I want to start building my investment portfolio in property, I need to understand will my future debt in IP hinder my ability to buy more expensive PPOR?
I'm a contractor so it's not an easy to get good loan nowdays. Do banks calculate total debt for a person before approving him a loan? For example, my current place where I'm living is being refinanced as 630K with 20% downpayment and I want to buy 3-4 IPs in 350-500K mark and after 2-3 years to buy new house as PPOR and rent out my exisitng apartment. Taking into consideration zero capital growth and -30K per year to service negative gearing will it stop me buying house in the future? I don't want to sell any property to reduce my debt at all for next 10 years.
I'm a contractor so it's not an easy to get good loan nowdays. Do banks calculate total debt for a person before approving him a loan? For example, my current place where I'm living is being refinanced as 630K with 20% downpayment and I want to buy 3-4 IPs in 350-500K mark and after 2-3 years to buy new house as PPOR and rent out my exisitng apartment. Taking into consideration zero capital growth and -30K per year to service negative gearing will it stop me buying house in the future? I don't want to sell any property to reduce my debt at all for next 10 years.