How Increasing Income is the bullet-proof strategy for property investors today

With the regionals I am looking at it's both. I'd say the regionals are going through a positive feedback loop with people leaving for more affordable homes. People leave for affordable housing to regionals = more investment in infrastructure in regionals = more people leaving to regionals etc

 

How do lenders asses income/dividends from shares (index funds, lic etc) in their servicing calcs?

 

They generally ignore it!

 

Are there any banks that accept this as income if you have a decent track history? Are there any tax structures (company / trust) that you can place the shares in that allows the dividends to from these structures to be recognized as income?

 

Good atartic good chart, @Redom

 

Yes

 

Generally they will use 80% of the lower of the last two years tax returns if they are widely held shares. A few lenders use a deeming rate. Again only on widely held shares but without having to hold them for 2 tax returns.

 

What is the thinking behind banks shading rental income but not salary. I would think you are far more likely to lose your job v losing rental income from an IP, which is rare absent the property burning down (short term vacancies excepted).

 

Straight forward answer

 

Gross rental income minus pm fees, vacancies ,water and maintenance etc? Probably closer to 30% in reality.
Allowances, overtime are shaded. Salary is salary until you lose your job.

 

Ah yes, shading happens to convert a gross number into a net number. Not really a shading because of risk. Makes sense. Thanks.

 

Almost 35% if land tax is involved.

 

Actually 40% if you consider you will need a major reno every 10 years or so.

 

And occasionally 40% for some of mine during a bad year.

 

Yep, I am averaging 35% after land tax.

 

I’m currently in the process of having 2 tenants evicted, require a new retaining wall plus fence at one place and need essentially a new bathroom at another property due to a water leak. That’s not to mention a minor fire at a fifth place which is covered by insurance thankfully but no doubt I will be paying for it with higher premiums over the long term...

 

Have had a few sway of these ......in the last few months. Had 8 vacant ...now down to 3 with 1 becoming vacant next week. Hopefully fill 2 in the next fortgnight...and reno 2....never ending.

 

With all due respect........you are NOT the first to think about reducing debt and increasing income, you just happen to be the most vocal. There are many, just like myself that have been doing so, long before you even registered on the forum. There are even some that have actually retired from the workforce.

It's not really rocket science.

 

We've had a few lately as well. Grrrr

 

Dems that way it rolls....