Positive cash-flow Investment Property on non-earning partner's name

My partner is on maternity leave and we are planning to buy our first IP. We have cash to pay for 10-20 percent of the cost and loan serviceability on my name. We have short listed some positive cash-flow properties.

Is it possible to buy the property with my partner having 90% and I am having 10% on the title? Will the bank would be able to finance the loan (on my name alone or on joint name)? Will the income and deductible both be spitted into 90% for my partner and 10% for me. (Example: If the yearly rent on this IP is $10,000 and all other deductible is $6000, my partner would claim and income of 9,000 - 5400 = 3,600. Similarly I would be claiming $400).

If we are able to do this, will it impact our borrowing capacity for the next IP when my partner goes back to work?

 

Yes, but it might be best to not be on title at all.
Legal Tip 68: Avoid 99%/1% ownership of property Legal Tip 68: Avoid 99%/1% ownership of property

Both could be on the loan with your spouse as the owner.

 

As youre spousal you can have 100% ownership if you want. However there is a couple of lenders out there that requires spousal to have minimal % ownership to adhere there substantial benefit requirements.

 

You need to be sure servicing works while your partner is on maternity leave.
Just because a property is cash flow positive doesn't mean the lender servicing calc will reflect that as they cap the rental income and shade to 80% as well.
Lenders treat Maternity Leave differently depending on who you use, each have a specific policy around it.

The impact on your borrowing capacity will certainly happen as you are borrowing more funds, however your borrowing capacity will also be increased by your wife returning to work.

You need a decent broker to look at the actual numbers and give you some clarity around what this does to future borrowing capacity.

 

Thanks @Terry_w, @Tony Xia and @Lindsay_W