Have a duplex, want to buy another few ip’s, bank won’t lend me any more $$, need some advice please

[heyynnie]

Hi guys and gals , So…I have a duplex in QLD, it’s valued at 1.2 million and I owe 600k.

Both sides rented at 600/week. I make 90 k a year and have 140k in super .it’s all in my name

Live with my partner , pay her rent . (edit - she owns her house , i pay her 200 /week and half the bills )

I’d like to build another ip or 3 , but no matter how , I can’t get the math to work.

Is it just not possible for me at this time , or is there some hoops I could jump thru to get it done .

Thanks for responses

 

[lindseym1013]

@heyynnie Here is why

Your income is 90k

Your rent is 62k but banks only assess 75% for serviceability or 47k

So total income is 137k, which allows you to borrow about 700k

But you’ve already borrowed 600k

So the answer is quite simple, earn more.

 

[raphaelcrombez]

@lindseym1013 This is the right answer

 

[iamdelon]

@lindseym1013 Is there a serviceability formulation or calculator you used to work that out?

 

[lindseym1013]

@iamdelon 5:1 is a good estimate, it’ll vary based on your expenses.

 

[gstarry]

@lindseym1013 Would equity increase borrowing power? looks like op has 600k equity on that 1.2m property

 

[shandy249]

@gstarry If they can't afford to repay it - what good is equity?

 

[meepmeeprr]

@shandy249 Exactly it's no good, a lot of people can't understand the concept.

 

[heyynnie]

@shandy249 Exactly, everyone is always ( equity is king ) , thats rubbish, equity is absolutely useless unless you are already rich ,or like half this sub, make 389k per year.

But , but, that sweet, sweet equity you have in you property.....

USELESS.....

 

[lindseym1013]

@gstarry No

Borrowing power is about income.

And they have 360k equity,

 

[jesusislord143]

@lindseym1013 Need to add rent of next investment property too though.

 

[jasonsloss]

@heyynnie Lololololol following for the comments about to follow

 

[whiterose26]

@heyynnie Sorry mate, banks love lending people money and collecting that sweet interest, if they're not willing to lend you more it's probably in your best interest not to borrow more

 

[clearskies7]

@heyynnie Earn more and stop paying your partners rent.

 

[heyynnie]

@clearskies7 Get a second full time
Job?
On it

 

[stellarnaut]

@heyynnie Speak to a broker. Look for someone with years of experience.

 

[dreamer503]

@heyynnie If they won't lend you the money then you have to rob them

 

[_%D7%A1%D7%AA]

@heyynnie ah yes the great australian dream of being a landlord instead of getting a real, productive job.

 

[truthinmyheart]

@_%D7%A1%D7%AA Not a dream for people who own property lol

 

[heyynnie]

@_%D7%A1%D7%AA I’ve been doing 10 hour days for 20 years , ya all can stick ya real, productive jobs up ya beeeehind.

And no , I’ve never aspired to being a boss/ In charge as that would mean I would actually have to care about work in the first place …

Work to me is nothing but a means to an end , a necessary evil .

As I’m older now, I’d like to actually start enjoying my life for a change , hence why being a landlord is such a lucrative endeavour for me ….