Increase Borrowing Power

Mitchell Beattie#1 Posted : Tuesday, 30 October 2012 4:50:09 PM

Hi all,

I thank you in advance for any assistance you might be able to give…

So here it is… I am 23 years of age and currently earning $55k per year. I have a residential investment property that I own 100% of. I also have a rural property (25 acres) that I own 50% of with my sister… I still live at home with my parent and the rent I receive for the 2 properties pretty much covers mortgage repayments.

I am attempting to purchase a 3rd property, however no banks will lend me any money over $200k due to me having a 50% share with my sister in a property. (because they only take in to account 50% of the rent but 100% of the debt…)

So I am hoping someone may be able to provide some suggestions on how I might be able to increase my borrowing capacity?

Eos Property#2 Posted : Tuesday, 20 November 2012 7:33:49 PM

Hi Mitchell,

You have a decision to make - stay in the business relationship with your sister or get ahead. The rural property will continue to have limited benefits to you as you progress along your journey because it is jointly owned by someone else and it is a rural property. Both situations are not viewed terribly favourably by lenders.

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