CashBond Confusion

[bbg2003]

I have no idea why if you have equity you'd need to borrow to create an income, so you can borrow more.
I have always borrowed on my equity and never had any problems with the banks. My taxable income has never been above 40K since 1994 (infact under 30K exept this year), and this year I got a 300K loan on a valuation of 350K. Last year I borrowed 300K in Jan and 114K in Aug, all with no mortgage insurance.
Still have'nt worked out what I'm missing.....


bbg2003

 

[Rolf Latham]

Hi BBG

Many people are not in as fortunate a position as you.

Many suffer service issues. One solution if they have excess equity is to use a capital return ration through an annuity aka Cashbond.

Ta

rolf

 

[BUNDY]

BBG,

Keep buying investment properties until you have in excess of $1M in loans and see what the bank thinks then. Trust me servicability will probably become an issue. Particularly if you invest in high Growth, low yield properties.

Cheers
BUNDY