Serviceability Problem



From: Kevin Fielding

Hello All,
Some helpful advice please if you can.
My finance was not approved for the purchase of two investment properties. The purchase price for both properties is $268,000.
My gross salary is $44,700. The expected rental from both i.p's is $320 per week.
I have a credit card with a $13,000 limit.
My present home loan which is an equity type loan or offset loan @ 6.42% for my PPOR will end up being around $30,000 after I use some of my savings for an extension.
As I see it I have 3 options.
1. reduce my credit card limit to qualify (maybe).
2. Only purchase one i.p. at this stage.
3. Wait until extensions are done and present finances are in order, then buy an investment property or two.
Maybe i am trying to do too much at once. Some help from all the learned ones would be much appreciated.

Best regards,
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Reply: 1
From: Rolf Latham

Hi Kevin

Looks like this should work

From the info provided though its very hard to make a call on with whom or what.

Depending on the lenders service models things that can matter include do you have a Mrs, kids, how many cars, are you buying with 20 % deposit, do you pay cc off every month etc.

I suspect you are trying to use the same lender that currently has your house. That can be restrictive.

Use a good independent broker and you should get a good idea of whether the deal can fly.

Even then, if a broker says no you may still find someone that can pick up the deal. Ther is lots of competition out there.


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Reply: 1.1
From: Kevin Fielding

Yes Rolf, I have 2 teenage kids a Wife and 2 chooks.
The Bank have dragged their feet a little and the Agent is not happy.
I have had to forfeit.

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Reply: 1.1.1
From: Glenys Shepherd


You know what they say.

The deal of the decade comes around every couple of weeks. Keep you chin up, get your finance sorted out and you will be ready for next time.


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