Serviceability and positive cashflow IPs

Just trying to get my head around the serviceability thing, so I know what my future options may be...

Let's say I am now able to get a maximum loan of $300k.

If I go out and buy my first IP with a loan of 150k and it's cashflow positive (or neutral), technically I'm not out of pocket at all (apart from the deposit).

So after that would my maximum loan amount still be 300k, or 150k or something in between?
How do the banks factor in an investment property when figuring out serviceability? And how do they work out projected expenses (like water rates, maintenance etc?)
 
Lenders only take a percentage of the Gross rent into consideration i.e 75-80% so that takes care of the vacancies and expenses.

You serviceability would increase by that percentage of the rent the lender accepted and then reduce by a principal & interest factor based on the loan amount.

Because there are a few variables it will vary between lenders.
 
Your new (second) loan amount will depend on your equity/deposit.

Generally banks will take 75% of rent as yours; the rest is expenses.
 
Think we'll have issues with $210k of loans and $16-18k rental income? That's over 3 houses, one will be a PPoR with half of that debt on it. I'm hoping to sell one house (have an interested party I'm hoping to prod to a sale) which will hopefully take us to $135k mostly non-deductable debt with $10-12k rental income. The other house barely affects the figures, really.

Still waiting waiting waiting for the final building contract. Best not rush these things, eh? :rolleyes:
 
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