borrowing power on a dual income we missed out on

Discussion in 'Property Finance' started by P j T, 2nd Sep, 2016.

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  1. P j T

    P j T Well-Known Member

    25th Aug, 2015
    Sunny Belfield NSW
    I am probably doing someone a favour by posting this but here goes;

    We have looked at a property that had previously had a valuation carried out on it carried out by a previous interested party.(who could not sort out there finances)
    It is a free standing house 3x1x1 with a 2x1x1 granny flat in the back portion of the yard. The granny flat is a high spec 'transportable building'. The valuer did not take this granny flat into consideration when assessing the value. The bank considered this a portable asset, thus could not be considered as part of the house to loan against. The dual income property is in a slight CG 3% pa area and offers 11-12% returns, house had recent reno etc.
    If we had bought this, would the dual income from both be considered for our future borrowing power or just the rent return for the permanent house only as this is all that a bank may have lent against? Keep in mind the rent return on both would be considered taxable income.
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    14th Jun, 2015
    Gold Coast

    for future income, if on a separate lease, a new lender not connected to that security wouldnt care too much if set the right way

    On a separate note............ whats gone is gone, and I find I do much better looking forward to what opportunities I have in front, and side, v the one thats in my rear view mirror.


    P j T likes this.
  3. Corey Batt

    Corey Batt Finance Strategist

    14th Jun, 2015
    Adelaide, SA
    If the valuer for purchase is likely to consider the granny flat as a non-permanent fixture for purchase the rental income will likely be disregarded - however for any future purchases the income would be acceptable with most lenders policies without too much hassle.