Jointly held property and future borrowings

Scenario

In 2010 purchased an investment property with 2 brothers (1/3rd each)

The loan on the property is now fully paid off and for now we are just distributing the net rent returns 3 ways

One issue we found with this arrangement in the past was when it came to purchasing properties in our own names with our wives (the debt attached to the joint property was assessed as being 100% attributable to each individual when banks assessed capacity etc)


This is part of the reason why we paid off the property really quickly

Now that it's all paid off we want we purchase another "sibling asset"

As the current jointly held property is unencumbered we could purchase another asset with the net outcome being cashflow positive (so no contributions are required) and the rent from both properties will pay 100% of the loan repayments / other costs


But we don't want to repeat the same mistake

Is it possible to structure it so it won't impact our borrowing capacity in our individual affairs

 

Why do you want to buy jointly.... again?

 

Gives us something to talk about I guess LOL

 

Yes. each borrow against your own properties so that there is no joint loans.

 

A simple solution to a simpletons problem

Why didn't think of that

Cheers mate