Finance strategist

Hey guys , looking to structure my property strategy and need a hand with the bigger picture .
I have four properties now and need assistance weaving through the financial mindfield .
Any brokers with a portfolio and vision for property strategy??

 

@Shahin_Afarin is based in Sydney and would have the required skill set to assist you.

Or there are a few of us on here that could also assist if non face to face isnt an issue for you as most if not all the regular brokers on here have clients Auswide and some even overseas.

 

I'm pretty sure most of the brokers here are also investors themselves.

I'm sure they could all give you a strategy, but you need to map out what you want from property investment. Short term and longer term.

Some brokers here might be long term buy and hold. There's at least one (that doesn't post much) that is right into nras. Others development. theres still lots of different strategies.

If what you want is be able to borrow more, many can help, but if the question is what structure and which properties will help me borrow more in future, then you might get a bit more information, and it will vary from broker to broker.

 

Thanks guys

The strategy that best suits me is buying property with yield 6.5 % and higher and in areas that tick all the boxes for it to stay healthy leaving options along the way to increase yield .
If there are brokers that can help me achieve this goal by structuring my loans correctly to keep costs down I would like to hear from them as I have just bought my 4th property and will have to start getting smarter .
Cheers

 

By your fourth property you may not have too many options left if your earn a normal income - you may need to restructure what you have first to allow for more purchases and make sure your good to roll IO periods and so on.

 

My borrowing capacity was around 215k before this buy, this property will be returning 7.5% gross, so if I'm correct my borrowing capacity shouldn't change ?

 

You are not correct.

 

Depends on bank but the yield often gets capped at 6% so it may make a difference. But that's not what I'm talking about - by 4 properties you'd be well off having all your loans reviewed before you completely max out. Once you pass that point you're pretty much stuck in place lender wise so you want to be sure it's all as it should be long term.

 

The yield would need to be about 10% for borrowing capacity not to change.

 

Just to clarify.

Banks use 80% of the rent, and calculate the potential repayments at 7%plus.

Therefore a 7% return yeild reduces borrowing capacity in most cases.

 

Thank for the responses I'll have to wait and see , when I've completed this buy I'll check my financial status and then I'll determine what I need to do next to stay in line to achieve my portfolio goal. A good broker does make a difference .
Thanks

 

Are you using a good broker now? If not, I would recommend not waiting until you're unable to do it on your own - you may find you've painted yourself into a corner and there's nothing anyone can do.

 

I had a broker , they seemed OK with the choice I've made moving forward, ideally a property returning 10% yield is what the numbers were requiring , I just couldn't find any that were ideal.
The property I found has some CG possibilities and is returning 7.5% yield gross , so I'll see how this changes things .