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From: Mike .
How do I buy multiple IP's in a year?
From: Owen
Date: 26 Oct 2000
Time: 10:27:21
I have read many times of investors buying multiple properties at a time or buying 43 IP's in 15 months (SMc) or 180 in 20 months (HK) etc. I would like to do the same to rapidly build my portfolio.
My question is how do you get a bank to lend that much money and to keep on lending it?
The biggest problem I had when borrowing for my second IP was the bank looked at it as if I had to cover the loan and my income didn't do it - and I have absolutely zero personal debt. It took a lot of convincing and a lot of real numbers to prove it was OK. I tried to get them to offset the rental income against the interest payments so the IP was proven to be self-maintaining but they just kept adding the rent to my income so my DSR was too high. My partner and I are living off our smaller wage (and still saving money) leaving the greater wage 100% for investment. This doesn't seem to matter to the banks who have their conservative calculations to follow.
Is the solution just to find a bank that will calculate this way and will understand what I am trying to achieve? If so can I have the name of one please? What about if I want to buy 3 IP's at once? What if I buy 10 in a year? Should they be bought through a company name? Would that qualify me for business loans?
Capital growth cannot account for all those deposits in such a short time even with really good re-valuations. I know the answer is to buy positively geared, no money down IP's wholesale off the plan every time but this is not going to happen every time. I'm finding it a little hard to do creative financing on a nice old Art Deco apartment block in need of renovation for $1.2m and then be able to buy another one 2 months later. Am I missing something obvious?
I guess this is aimed at the gurus who have already made it to this level. How about a few hints for those trying to get up there with you. Help me speed up the process.
How do I buy multiple IP's in a year?
From: Owen
Date: 26 Oct 2000
Time: 10:27:21
I have read many times of investors buying multiple properties at a time or buying 43 IP's in 15 months (SMc) or 180 in 20 months (HK) etc. I would like to do the same to rapidly build my portfolio.
My question is how do you get a bank to lend that much money and to keep on lending it?
The biggest problem I had when borrowing for my second IP was the bank looked at it as if I had to cover the loan and my income didn't do it - and I have absolutely zero personal debt. It took a lot of convincing and a lot of real numbers to prove it was OK. I tried to get them to offset the rental income against the interest payments so the IP was proven to be self-maintaining but they just kept adding the rent to my income so my DSR was too high. My partner and I are living off our smaller wage (and still saving money) leaving the greater wage 100% for investment. This doesn't seem to matter to the banks who have their conservative calculations to follow.
Is the solution just to find a bank that will calculate this way and will understand what I am trying to achieve? If so can I have the name of one please? What about if I want to buy 3 IP's at once? What if I buy 10 in a year? Should they be bought through a company name? Would that qualify me for business loans?
Capital growth cannot account for all those deposits in such a short time even with really good re-valuations. I know the answer is to buy positively geared, no money down IP's wholesale off the plan every time but this is not going to happen every time. I'm finding it a little hard to do creative financing on a nice old Art Deco apartment block in need of renovation for $1.2m and then be able to buy another one 2 months later. Am I missing something obvious?
I guess this is aimed at the gurus who have already made it to this level. How about a few hints for those trying to get up there with you. Help me speed up the process.
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