how to acquire more loans with one salary

hi

recently i have acquired 3 properties and almost now have to pay 500ish land tax in vic.

2 properties are +ve cashflow with min 80% LVR or even more since its been month since i buyed them.

could you guys guide me how i can draw equity from existing properties and buy more properties?

my Mbroker says i cannot get more loans cause banks look at servicebility based on salary and not cashflow of properties.

can you give links of how Valuations can change the face of a mortgage.
 
Get a second opinion? There are heaps of brokers in VIC.

There are some smaller tier lenders that have more generous servicing criteria/calculations.

I would consider doing this sooner than later before the remaining lenders start changing their policies.

Have you been advised of what sort of income you require in order to ascertain the equity from the existing properties?
 
my Mbroker says i cannot get more loans cause banks look at servicebility based on salary and not cashflow of properties.

Banks look at both.

Whilst they won't take into account 100% of your rental income - they'll generally take 80% of it.

The biggest factor impacting investors serviceability right now is how banks calculate the debt you hold with other lenders.

Agree with getting a second opinion.

Cheers

Jamie
 
could you guys guide me how i can draw equity from existing properties and buy more properties?

Forgetting serviceability for a minute, sounds like you don't have equity to draw out from existing properties anyway, from what you've described?
 
i buyed them 6 months ago and they are a bargain for the market price. i am sure they will be valued more than what i paid for. i did small renos too.
 
Which bank Avatar? To release equity the bank will need to do some sort of valuation on your property.

Some banks you can order valuations upfront without too much of an issue. Others you may need to submit a full application for funds before a valuation comes through.
 
Both lenders allow for upfront valuations but you need to ensure you can service the lender with that lender (particularly Suncorp which is a very conservative servicing lender).

Don't put the cart before the horse. Have a strategy in place before you start ordering upfront valuations.
 
Heya,

If you're looking to draw out equity - what is the purpose of those funds? Is it to fund more investments?

By strategy, it makes sense to map out your next moves and then order vals/draw out equity.

For example, it doesn't make sense to order those valuations if you don't have the borrowing power to draw out those funds. If the purpose is for more IP's, should consider how your going to get those funds too as part of strategy.

Cheers,
Redom
 
hi syed 2 with cba and one with suncorp. can you suggest which banks do valuations upfront without damaging credit rating?

The CBA will do an upfront valuation for a fee of $49. Suncorp doesn't do upfront valuations.

The CBAs servicing model is okay, Suncorps is terrible. There are alternate lenders available which will lend significantly more to investors if you're running into servicing problems.

All lenders take rental income into account for servicing purposes, but the effect and usefulness of this income can vary from one lender to another.
 
Hi Syed

you said borrowing power. how do the bank decide my borrowing power? it is based on LVR on existing properties or my salary? without valuation how can we decide on how much we can borrow?
 
Hi Syed

you said borrowing power. how do the bank decide my borrowing power? it is based on LVR on existing properties or my salary? without valuation how can we decide on how much we can borrow?

Borrowing power is determine by your income minus ongoing liabilities/expenses. LVR doesn't come into play (well technically it can for certain deals but there's no point confusing you further).

Cheers

Jamie
 
HI Jamie

If I have three rentals and the rental income - expenses evens out do the banks take it as no liability? in that case anyone can take hundreds of loans if they buy deals with cashflow equals expenses.
 
HI Jamie

If I have three rentals and the rental income - expenses evens out do the banks take it as no liability? in that case anyone can take hundreds of loans if they buy deals with cashflow equals expenses.

Its based on 'assessed' expenses, not actual expenses.

Most banks will take your mortgage debt at around 7% and P/I repayments, not the actual repayment you pay.

Cheers,
Redom
 
HI Jamie

If I have three rentals and the rental income - expenses evens out do the banks take it as no liability? in that case anyone can take hundreds of loans if they buy deals with cashflow equals expenses.

Nah unfortunately not.

They will only take a portion of the rent into account - usually 80% of it.

They may add a loading to your existing loan repayments too.

Cheers

Jamie
 
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