Sorry lamen terms ha
OFI?
AMP?
Secret broker black magic words.
OFI = other financial institution
AMP = https://www.amp.com.au/
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Sorry lamen terms ha
OFI?
AMP?
So that point seems sort of mute then in the OP although still worth mentioning for older investors who bought a while ago and now rent for much more.
So buying now with rents wont actually make gain you any more buying power?
There's no hard and fast rules for servicing, hence why it requires a bit of finesse to squeeze every last dollar possible.
Agree 100%
There's lots of other quirks to consider when looking at servicing that are lender specific. For instance, AMP won't touch you when your portfolio grows above 10 properties.
Before you reach that point - they will take 100% of rental income when the LVR for the purchase is at 80% - but will also restrict the yield they take into account on properties that are highly CF+
Some lenders (Advantedge and Macquarie spring to mind) will take all other debt at actual repayments including the debt you hold with that lender (if held for a certain amount of time).
Cheers
Jamie
They don't, thats why rental income is assessed at the rate it is because they assume rental expenses exist.Which category does IP expenses fall under?
In a cash-flow negative situation, how much does each dollar roughly equate to in lost borrowing capacity?
great post it should be stickied to the top of the fourm quick question: For each dollar you pay off a homeloan what is the average amount it will help your serviceability.
Is there a minimum discretionary expense which the banks will use even if you are actually very frugal in real life and don't spend much?
Thanks for response.
So for single person without kids, its around $16k pa.
How about if you have kids? Will a toddler expense be different to a newborn to a teen??
Great post it should be stickied to the top of the fourm Quick question: For each dollar you pay off a homeloan what is the average amount it will help your serviceability.