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Where do you find these Brokers PK? They mostly rubbish to be honest, @ausProper 1) he talks about 80% rental shading but fails to mention there are lenders that only shade to 90% of rental income, using 10% more rental income for borrowing capacity and they are NOT 3rd Tier lenders that do this. 2) he says rental expenses are calculated as 10% of the total loan amount, this is also incorrect, it's 10% of the rental income received, BIG difference. Eg Loan amount is $600k he's saying rental expense would be applied at $60K per annum! No, just doesn't happen this way. Say you're property is earning $600 per week, rental expenses allocated in the loan app will be $3120 per annum or $60 per week.... sheesh and that's in the first 5 minutes of this episode...
One thing that has made it easier for me is Commercial property in Companies and Trusts.. I have some in commercial properties and moved to the commercial side of the bank. It got out of all the retail analysis of my personal situation. I can just pass tax returns and financials to my bank manager, and then approvals are much easier. I can just keep each loan with each property and deal with thing commercially. The Non-cross cauterisation definitely keeps you free to get finance easier. That and maintaining buffers for safety.
Hypothetically, if you had a property go down in value since the time you bought it, will the bank come at you asking for cash to get it back to the original LVR?
No, however if you wanted to refinance for a better interest rate the banks will request an appraisal to be done on the property and if your 'loss' shows your LVR has changed from 80% LVR to 90% you may find the new lender to increase the interests rate due to the change in the LVR (high risk for the lender)
Wondering if anyone knows the lender he is referring to that doesn’t take into consideration property expenses with regard to serviceability on investment loans👍
quite a few vids on borrowing capacity, would love one on serviceability hacks! i have a ton of capital and equity but don't have any income to get a loan
If you have borrowing capacity enough to buy one property then you can go with trsut structure to buy IP in trsut, and keep retaining your personal borrowing capacity as long property you buy in trust is either neutrally or positively geared.
@@MAKAYLA667 No - if your sole income is rental income there are very limited lender options plus rental income will not be enough to afford another loan, you really think you can get a property returning $80K + rental income?
Where do you find these Brokers PK? They mostly rubbish to be honest, 1) he talks about 80% rental shading but fails to mention there are lenders that only shade to 90% of rental income, using 10% more rental income for borrowing capacity and they are NOT 3rd Tier lenders that do this. 2) he says rental expenses are calculated as 10% of the total loan amount, this is also incorrect, it's 10% of the rental income received, BIG difference. Eg Loan amount is $600k he's saying rental expense would be applied at $60K per annum! No, just doesn't happen this way. Say you're property is earning $600 per week, rental expenses allocated in the loan app will be $3120 per annum or $60 per week.... sheesh and that's in the first 5 minutes of this episode...
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❤ JOIN THE COMMUNITY & GET FREE SUBURB TIPS + STRATEGIES
💡 Private Facebook Group With Over 50,000 Clients & Investors 👉 facebook.com/groups/passiveincomethroughproperty
💡 Top Ranked No "BS" Podcast On Spotify/ Apple Podcasts/ Google 👉 consultingbypk.com.au/podcast/
Where do you find these Brokers PK? They mostly rubbish to be honest, @ausProper
1) he talks about 80% rental shading but fails to mention there are lenders that only shade to 90% of rental income, using 10% more rental income for borrowing capacity and they are NOT 3rd Tier lenders that do this.
2) he says rental expenses are calculated as 10% of the total loan amount, this is also incorrect, it's 10% of the rental income received, BIG difference. Eg Loan amount is $600k he's saying rental expense would be applied at $60K per annum! No, just doesn't happen this way. Say you're property is earning $600 per week, rental expenses allocated in the loan app will be $3120 per annum or $60 per week.... sheesh and that's in the first 5 minutes of this episode...
One thing that has made it easier for me is Commercial property in Companies and Trusts.. I have some in commercial properties and moved to the commercial side of the bank. It got out of all the retail analysis of my personal situation. I can just pass tax returns and financials to my bank manager, and then approvals are much easier. I can just keep each loan with each property and deal with thing commercially.
The Non-cross cauterisation definitely keeps you free to get finance easier. That and maintaining buffers for safety.
Excellent Information PK. Thank you Both of you for your time.
Hypothetically, if you had a property go down in value since the time you bought it, will the bank come at you asking for cash to get it back to the original LVR?
No, however if you wanted to refinance for a better interest rate the banks will request an appraisal to be done on the property and if your 'loss' shows your LVR has changed from 80% LVR to 90% you may find the new lender to increase the interests rate due to the change in the LVR (high risk for the lender)
This is a very very rare thing to happen but no they won't.
@adriannalyon9514 you mean like the financial crisis in US ? "Very rare".
Thanks PK and Colin, some very useful tips there
Wondering if anyone knows the lender he is referring to that doesn’t take into consideration property expenses with regard to serviceability on investment loans👍
Doesn't exist
@@jamesthompson4971 indeed it does, Firsmac and others
Question how does this go for people with bankruptcies in history is there any recommendations
Bankruptcy stays on your file for between 5-7 years and you can apply for finance 1 day after it’s discharged.
quite a few vids on borrowing capacity, would love one on serviceability hacks! i have a ton of capital and equity but don't have any income to get a loan
Buy a business that’s profiting
Option 1 find a positive geared Investment property and use the proposed rental as Income to service the debt.
Option 2 - Buy using your super
If you have borrowing capacity enough to buy one property then you can go with trsut structure to buy IP in trsut, and keep retaining your personal borrowing capacity as long property you buy in trust is either neutrally or positively geared.
@@MAKAYLA667 where are any positive geared properties
@@MAKAYLA667 No - if your sole income is rental income there are very limited lender options plus rental income will not be enough to afford another loan, you really think you can get a property returning $80K + rental income?
Does having better lvr and higher valuation help with refi? despite havingb 2 x independents? or is it more aboit serviceability?
It's all about serviceability, you can have a great LVR but if you don't pass serviceability then you won't get the loan.
And if you do get the loan, has financial repression in the very near future been taken into account ? Time to wake up
It has started in the UK
Can use equity as a deposit
Some banks don't allow it.
Go colin.. go Perth
How do i get in contact with this broker
He shared his details at the end
Hi PK it’s great to learn from you doing great job.
Thank you
PK is there any appointment do i need to speak to you over the phone ?
@@manpreetsingh-lh1km please see what I do here: consultingbypk.com.au/
@@AusPropertyMasteryWithPK👍
Can equity be used as a deposit???
Yes if you have the requisite borrowing capacity
Which is....
Or suggest a good bank please
@@epep9437 you need to work with a mortgage broker to calculate this.. did you listen to the episode?
@@epep9437 I think you need to listen to episode again .. you missed the point
Where do you find these Brokers PK? They mostly rubbish to be honest,
1) he talks about 80% rental shading but fails to mention there are lenders that only shade to 90% of rental income, using 10% more rental income for borrowing capacity and they are NOT 3rd Tier lenders that do this.
2) he says rental expenses are calculated as 10% of the total loan amount, this is also incorrect, it's 10% of the rental income received, BIG difference. Eg Loan amount is $600k he's saying rental expense would be applied at $60K per annum! No, just doesn't happen this way. Say you're property is earning $600 per week, rental expenses allocated in the loan app will be $3120 per annum or $60 per week.... sheesh and that's in the first 5 minutes of this episode...
Try the local toilet block, they all huddled together with realestate agents and politicians