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?)
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?)