Looking for a calculator.

I know "somewhere" there is a calculator online where you put in something like ...

Gross wages
Outgoing expenses
Credit card limits
Current mortgage
current VALUE of said mortgaged house

Then:
Asking price of IP
Deposit offered
Rent expected

And it spits out
How much you can borrow.

Anybody know what the heck I am talking about.

All the calculators I seem to find seem to be "how much can I borrow"
but don't seem to be accounting for any equity in PPOR.
 
There are plenty of site that have calculators like tehse. personally I would take anything they spat out with a grain of salt. A big grain at that.
 
any clues Bradsdad??

I realise the "grain of salt" thing.

But at least a "ball park figure " is beter than wasting your MB's time which may be better spent with someone who can ACTUALLY be a client. :)
 
Its not wasting their time. I agree with Bradsdad online calculators wont give you what you need. A broker can give you a ball park figure very quickly over the phone.
If you want to, you could always do it the long hand way, work out your own balance sheet, as the banks would. 80% of proposed rental, net wages/salary negative gearing income. Approximately $1200 for a single persons living exs, along with a sensitised interest rate about 2 to 3 % above the current rate will give you an idea of what you can borrow.
A diferent question relates to equity and how you use it.
 
All the calculators I seem to find seem to be "how much can I borrow"
but don't seem to be accounting for any equity in PPOR.

That's probably about as good as it gets with online calculators, which is why they're generally worthless.

Also the equity in your PPOR doesn't really add to your serviceability, it adds to your potential security.

Brokers pay a lot of money (either directly or through other fees) for software and support that take s a lot more information into account. Most lenders also release spreadsheets or other platforms for brokers. We also have to go through a lot of ongoing training to keep up to date with the policies around these calculators.

I've attached a fairly generic calculator from Genworth (LMI insurer) which some lenders use. Without knowing your circumstances it's not going to be reliable either, but it's better than what you'll find on most websites. It also has no allowances for individual lender policy.
 
If you want to, you could always do it the long hand way, work out your own balance sheet, as the banks would. 80% of proposed rental, net wages/salary negative gearing income.
Does that mean if you are proposing to buy a house where 80% of the rent covers the interest on the loan, you'd qualify?
 
Doesn't compute. If I engaged a PM it'd cost me 20% straight away, *plus* rates, insurance and maintainance.

My PM takes 7.7% of the rent, $15 for each quarterly inspection and $150 for re-letting fees.
If the current tenant leaves, then PM charges 2.2 weeks rent for new lease.

That makes it approx. 10% of the rental. Rest 10% goes for rates and/or maintenance.
 
10% for you. 20% for me. Different rents, different PMs. My rates and insurance add another 14%, then P&I repayments add 40%, which wouldn't leave me with much in the pocket. Its why I'm not engaging a PM ... so far my hunt for a tenant has cost $0.

I was just curious as to serviceability vs rent. I need $100k to build a house, house will rent for $14,500. $250,000 equity as a 'deposit' which with other loans keeps us way under 60% LVR. Would this be a guaranteed loan or do you need to prove you have, say, $50k in other income too just so you actually get the loan?

Last time I asked this the answer was 'no', which seems incredibly dumb when they'll let you get a negatively geared place if your income is higher. The online calculators break severely when you start feeding really small figures and high positive geared amounts into them.
 
80% of rent is just what most lenders use in the servicing calculator, whether you self manage or not. The 20% is supposed to take into account rental agent fees and other non interest costs of holding a rental property.

Note, some banks use 75%, some only 75% of their rental estimate (4% of purchase price etc etc), some lenders use 80% of what you can cojole a managing agent to write a letter estimating.....
 
Hrm. I might actually have to do this formally when we have the land on its own title. Amusingly, the rent from the new house would be considerably more than interest on the mortgages for ALL THREE properties :) The rent from my old house is $100pm shy of paying for the two mortgages we already have. Not sure why more people don't positively gear.

80% of rent is just what most lenders use in the servicing calculator, whether you self manage or not. The 20% is supposed to take into account rental agent fees and other non interest costs of holding a rental property.
That makes sense. 20% is reasonable, I'm sure everyone else out there who runs into the situtation where a PM costs an arm and a leg would self manage too, and it averages out to 20% across the board that way.
 
Some lenders will sometimes not take the actual rental paid, even 80% of it. Examples are display homes rented back to the builder, some student and serviced apartments etc. Might be a similar issue with mining towns.....
 
Interesting.

Says we can borrow about $19-25k on current income (need $100k), which sounds about right as that would take us to the limit of what we were originally approved for.

Jumps to $115-150k if I throw in anticipated rental income.

Maybe this is doable after all without stupid bridging finance or having to sell and then live in a caravan ....
 
The rent from my old house is $100pm shy of paying for the two mortgages we already have. Not sure why more people don't positively gear.

I'm curious as to where you find these? What I mean is, is that one of those stunning deals or are these available all over the place and I'm just looking in all the wrong places or ignoring a section of the market?

Got any examples from realestate.com.au ?

Personally I'd love a bunch of really cheap positively geared houses locally, that I could move into one after the other and renovate (say 1 per year).
 
We bought a splitter block so I'm talking building a house on 'free' land that would cost about $220-250k new to buy and would rent for $280pw. You could equally buy the land and build for about $160k total. In Gladstone you could do the same for < $120k but you would get < $200pw rent.

But there are a few existing places around my area that are positively geared (just) and there seems to be heaps in places like Pt Pirie and Broken Hill that are very positively geared if you like fibro houses. The local agents are terrible at not listing the rental yield though.
 
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