great thread Redom! Lots of good info in here. Agree should be a sticky
Interesting thread Redom , thanks.
Q. RE: credit cards. One positive use was to put all expenses on the CC, leave funds in offset and transfer at the end of the month while paying down ppor debt.
When one gets to a point where ppor is 100% offset and savings accumulate - is it beneficial to cut up the CC? Or would you only do this when you hit a servicibility wall and chopping up the cards will actually get you over the line?
Doing some math on the calculators, you'd need more than an 8.5% rental yield before properties add to your borrowing power.
I am wondering, if rental yield doesn't add much to borrowing power, how do others on a moderate 70-80k income manage to get such a large portfolio of 10+ properties?
It's not about 'adding' to serviceability, but reduce the rate of eroding maximum borrowing capacity. Combine this with a carefully structured finance setup and you can build a multi mil portfolio with ease.
This may sound odd but a question for the brokers on here. Do you deal much with other mortgage brokers as clients? The reason I ask is because standard lending and investment lending seem to be worlds apart.
I imagine a large number of brokers would not be very proficient in investment lending and if they wanted to build a portfolio based on what they think they know may land themselves in trouble.
Most brokers don't have substantial investment property holdings.
They wouldn't go to a specialist either because they think they're doing a great job. They don't know what they don't know. I've been to plenty of professional events where I was speaking a different language to the rest of the room.
Yeah, I have four worshipers in my household
They are all under eight so if they still worship me in 15 years we have done a good job.