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Individual Borrowing Capacity AFTER Buying with Tenants in Common

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Gennady Podlubny | 21 May 2015, 05:38 PM Agree 0
Has anybody successfully navigated around the challenge of low individual borrowing capacity after buying with an investment partner using tenants in common?

From my research so far most lenders have serviceability calculations similar to 30% of rental income, 100% of debt counted against your serviceability from any properties you purchased using tenants in common. This is obviously a huge problem, say, if you purchased a few properties with a business partner but then want to buy another property with your partner.
  • Anon | 23 May 2015, 09:26 AM Agree 0
    I had problems getting a loan by myself for an investment property as I had some with my sister. The banks didn't want to split the debt but halved the income. I finally got one with the Commonwealth Bank because we had 2 loans with them already. I had to put down a 20% deposit. It wasn't an easy process.
    • Gennady Podlubny | 28 May 2015, 04:29 PM Agree 0
      thanks for the advice...

      did you have property share loans and still found trouble getting one on your own?

      i am trying to find a way around this pitfall... the cba property share loan means there are two completely separate loans... is that what you had and even so other lenders wouldn't lend to you?
  • Phil McCarroll | 25 Jun 2015, 08:03 AM Agree 0
    Hi Gennady,

    Why not have a read of our chat with Rebecca Hona from wHeregroup, it might have something that will help you out.
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