Hello property investors :)

Hi all, I've been renting out (I'm the Landlord not using a real estate agent) a 2 bedroom unit for about 5 years now. My wife and I also built a 3 bedroom house which we lived in for 2 years until the house outgrew our little family (2 boys). So we have been renting that out for 2.5 years and we would love to get another investment property but due to serviceability we can't until my wife is working again. I don't understand that as I'm on a good income and both properties are positively geared. In the meantime I just want to learn as much as I can and contribute when I have the time
My father-in-law is my mentor as he has 10 properties and retired before he hit 60. My goal is to semi-retire by 50 but even by 60 would be great.
Looking forward to chatting with you all.

 

Hi and welcome aboard.

Who advised that you hit a borrowing capacity wall? A bank or broker?

Cheers

Jamie

 

Different lenders have very different criteria for determining how much you can afford. The results can vary dramatically depending on on the circumstances and there's on 'one size fits all' solution. You're not going to get a comprehensive analysis by simply talking to one or two lenders, which is why a broker can be so useful.

All that said, there's been a lot of changes in lending criteria over the last 6 months and people simply can't borrow as much they once could. It's a serious problem and I don't think people will be able to get the same results for financial independence as quickly as they once might have.

 

Hi Stephen,

Welcome to the forum!

You're lucky to have a mentor, most people are lucky if they know someone with 10 properties, let alone be related to one

Keep an eye out for our Perth meet-ups - there should be one sometime in January, it would be good to have you along.

 

I wish I had learned more for my parents - still time but they are SMSF investors.

Where is your IP? Perth?

 

Hey @StephenB , welcome aboard.
Are you using the 10 property strategy as a rough blueprint?

 

Thanks Jamie. Yes our bank manager. I haven't considered using a broker. With the banks lending less money lately I don't rate my chances.

 

Which lender, Stephen?

 

If I listened to my parents financial advice I wouldn't have taken any risks. They still don't understand the difference between good and bad debts.

Yeah both of them are in Perth (South of the river) but the next one we won't live in it first

 

NAB, we get a decent group discount

 

As an investor I think you need to explore every avenue. Don't take no for answer too easily.

 

Yeah as a basic guide but I understand the market has changed a lot since he purchased/built his IPs and I'll need to be adaptable

 

Group discount? How's that?

 

My father-in-law negotiated it for our immediate family due to the number of home loans we have

Ps is anyone else struggling to use this website on an iPhone using Chrome?

 

I'm using Chrome on android and it's fine.

 

That could explain it. Limiting yourself to one lender can limit your borrowing capacity.

I hope that group discount doesn't mean that all loans (yours and families) are crossed up.

Cheers

Jamie

 

I hope that too - not a good situation if so, especially for a retiree.

 

Yeah I have read that limiting to one lender is not a good strategy as they cross your loans.

Our families loans aren't crossed just our personal home loan to one of the IPs (I'm pretty sure).

 

That's great news, it makes it much less complex to fix. Having loans with one lender can be fine, you can have multiple uncrossed loans with one lender, however NAB are notorious for crossing loans, so if you go direct to branch it's inevitable they'll take all the security they can.

 

Yeah I've got a feeling they did cross the loans as I remember them saying it was for security, even though we didn't need LMI.

I'm thinking about getting a line of credit and using that money plus most of our savings (leave some for a rainy day) to put a deposit down on an IP.