Presidential Moves to Boost Your Borrowing Capacity
Make Your Lending Power Great Again!
We're AUS Property Investors, your financial stone sculptors - Reshaping what you thought was set in stone!
This Month’s Run Down:
🧢 Make Your Borrowing Power Great Again
💰 How This Investor Built A Passive Income Empire
💼 Why You Shouldn’t Be A Property Developer 🏗
📈 Are Shares Better Than Property For Financial Freedom
💥 An Investor’s Journey From Migrant To Millionaire
💡🤓 Using Data To Build A $150K Passive Income Portfolio
🤵♂️ Presidential Moves to Boost Your Borrowing Power
🧰 FREE Property Tool Of The Month
Make Your Borrowing Capacity Great Again!
Life has a funny way of reminding us that nothing is set in stone.
I mean, just ask the guys who were absolutely certain that Labor would keep their iron grip on Queensland. 😵💫
Or let's talk about the upcoming US presidential election. In 2016, if you were a betting man, the odds of Trump winning the election were 10 to 1. Let's just say you could have made a little money on the side there. But no one actually thought he had a chance.
Currently, the odds for Trump are 1.52 and 2.5 for Kamala Harris.
What's going to happen?
Who knows. In the US, literally anything is possible.
Remember when Netflix was a DVD rental service? And Blockbuster refused to buy it for $50 Million?
No?
What about Yahoo refusing to buy Google for $1,000,000?
Or the EU playing with negative interest rates?
The point is that nothing is set in stone, and this month, we're sharing some presidential moves to improve your borrowing capacity.
Because this is where most investors get stuck. It’s not cash, it’s not equity. It’s borrowing!
And who couldn't use a little extra when buying their next investment property?
For The Newbies
A very warm welcome to all the new subscribers! We’re thrilled and honoured to have you as readers and truly appreciate your thoughts and feedback 🙏.
Each edition of this newsletter will contain a deep dive into the property experts, investors, and all-around legends that grace us with their time and energy for the Facebook lives we run in our Facebook Group Aus Property Investors.
Now Australia’s Largest Property Investment group with over 77,000+ members!
For those who need a catch-up when they aren’t free for an hour [or sometimes 2] at 7:30 pm Wednesday night (we know we’re not), we created this newsletter, along with recording the sessions on our Youtube channel.
If this has any value for you at all, feel free to share and forward this newsletter to a friend!
That helps us a lot in bringing the best property guests Australia has to offer!
October Live Guests!
Daniel Domingues
Daniel Domingues is deeply passionate about property investing, so much so he’s creating a cool AI Tool Greedy Landlord and eager to share his journey. As a decisive action-taker, once Dan sets his mind on a goal, he takes the steps needed to bring it to life.
Originally from Brazil, he moved to Australia as a student in 2002 and has since built an impressive 8-figure Property Portfolio from $0.
During this session, our discussion centred around Key Insights For Building An 8 Figure Property Empire & Then Switching To Passive Income, with the juicy details unpacked and plenty of practical mindset gems 💎!
Daniel: “People often see the cash flow numbers, but what they miss is that without building capital growth first, it is a harder transition to generating cash flow later".
This is a teaser of the gold 🏅 that we discussed in the How This Investor Built A Passive Income Empire💰 episode that can be found by clicking the link below 👇
Ross Versteegh
Ross has been working in the Property Sector for close to 2 decades. He has been a Building Designer+Developer since 2012 completing 1,000+ custom designs for builders and developers. Now all he does is developments!
To show the powerhouse that Ross is he started the Gambit Development Group in 2018 and has done 100+ developments since.
In this session, we focused on Why You Shouldn’t Be a Developer
Ross: “Developing is not about challenges on board... There is an art, there's a science to developing. It's a full-time job. This is not something to put one foot in and hop out the next day. You're in it when you're in the thick of it, you’re pretty much waist-deep or head-deep in mud, so you’ve got to kind of trudge through it to get to the other side.”
This is a glimpse of our discussion, and there are tonnes of valuable insights into Why You Shouldn't Be A Property Developer. Dive into the gems 💎 by clicking the link below 👇
Gaurav Makhijani
Gaurav is a driven and strategic investor who has achieved what most can only dream of. Arriving in Australia in 2019 with little to his name but a hefty dose determination and a plan with his family. Gaurav built an impressive $4.5+ million property portfolio in just under four years.
His journey is a masterclass in numbers-driven investing, free from emotional bias, and marked by deliberate, well-informed decisions.
This session’s conversation revolved around How This Investor Built A 6 Property [$4.5+ Mill Worth] In Under 4 Years 💎!
Gaurav: “The key trend is balancing cash flow and equity growth. The journey could have ended after each purchase without focusing on these aspects. With equity growth, we pulled funds to continue growing the portfolio."
There are incredibly valuable insights in this session on going From Migrant To Multi-Millionaire. Explore the wealth of information by clicking the link below 👇
Dave Gow
Dave Gow is the founder of Strong Money Australia and a key voice in the Australian Financial Independence Retire Early (F.I.R.E) movement. After retiring at 28 from a career as a forklift driver, he built wealth through disciplined budgeting and investments in property and shares.
Dave now shares his strategies through books, blogs, and podcasts, focusing on simple financial practices like debt recycling, savings habits, and long-term investing.
In this session, we dived deep into the controversial topic of Are Shares Better Than Property For Financial Freedom 🏡📈
Dave: "Taking action is what separates those who achieve financial independence from those who don’t. Many people get stuck in analysis paralysis, trying to learn everything before starting. But the truth is, you learn the most by doing."
If the above 👆 summary of our conversation has sparked your interest, discover all of the amazing golden nuggets in the Are Shares Better Than Property For Financial Freedom session by clicking the link below 👇
Matija Djolic
Matija Djolic, Ph.D., is an expert in property data analytics and co-founder of HtAG Analytics, an Australian platform focused on identifying high-growth real estate markets. His expertise revolves around applying big data and machine learning techniques to property investment, helping both investors and professionals make data-driven decisions.
Djolic emphasizes pattern recognition within real estate metrics and advocates for a practical and repeatable methodology in selecting top-performing locations.
In this session, we dived deep into The Key/Critical Data To Consider & How To Use Data To Help Build Your $150K Passive Income Portfolio!
Matija: "The fact that an area, for example, has grown 50% in the last five years doesn’t mean it will stop growing. The area might still have reducing supply and increasing demand, which means it will grow more. Making a decision purely on growth patterns without analyzing supply and demand dynamics is inappropriate—you’re walking blind into a decision".
If the above 👆 summary of our conversation has sparked your interest, discover all of the amazing golden nuggets we dropped in the Using Data To Build Your $150K Passive Income Portfolio session by clicking the link below 👇
Presidential Moves to Boost Your Borrowing Capacity
Many Aussies are taking a moment to think about their financial future. And they should be! With property prices still climbing despite economic challenges, many wonder if their property investment dreams are still achievable after 13 straight rate hikes. Well…….they are!
But to succeed in today's market, you must be smart about it.
The Lending Landscape Has Changed
Being able to borrow seven or eight times your income is long gone.
Off the bat, most borrowers can only get around 4.2 to 4.5 times their annual salary. If you're making $100,000 a year, you're looking at a maximum loan of about $450,000.
That's a long way from what was possible just a few years back, and not a lot of money to play with.
But don't be discouraged just yet!
Instead, use it as motivation to get savvy about building your borrowing power. It's all about understanding and optimising every part of your financial profile.
The Credit Card Conundrum
Do you have credit cards? Of course, you do. However, many people don't realise, how much credit cards hurt their borrowing power. Forget the Frequent Flyer points for a moment.
Did you know that every $10,000 in credit limit reduces your borrowing capacity by around $40,000-45,000?
A $30,000 limit could cost you up to $135,000 in lost borrowing power!
Now, don't cut up your credit cards just yet. But it's worth looking into alternatives like debit cards or lower-limit cards that still give you rewards without harming your borrowing capacity.
Keep in mind that lenders look at your credit card limits, not your spending habits or whether you pay them off each month.
Re read that again in cased you missed it!
Managing Debt Strategically
Consumer debt like car and personal loans can really affect your borrowing power. But paying them off isn't always the best move. Sometimes, strategic debt consolidation through your home loan can actually free up more borrowing capacity.
#nofinancialadvice!
Here's an example: paying off a $30,000 car loan could boost your borrowing capacity by over $40,000.
But the real magic happens when you structure your debts the right way. We've seen investors roll their car loans into their mortgage, spreading the debt over a longer term and freeing up borrowing power for investment properties……along with dropping the interest rate from something stupid like 13% to your home loans 6.7%.
The HECS/HELP Headache
If you've got a HECS/HELP debt from Uni, you're dealing with a tricky beast.
It's "good debt" because it doesn't charge real interest, just indexation. But it can still take a big bite out of your borrowing capacity, especially if you're a high earner.
The more you make, the bigger your compulsory repayments, and the harder it hits your borrowing power.
So, should you focus on paying down your HECS/HELP debt?
It depends on your situation, but the borrowing capacity boost can make it worth putting extra toward those payments for many investors.
I've seen cases where knocking out a $20,000 HECS debt unleashed over $200,000 in borrowing power for high-income earners.
Maximise Your Rental Returns
Most investors zoom in on capital growth potential, but the rental yield is a huge factor in borrowing capacity. Properties pulling in 4.8-6% yields or better can seriously increase your borrowing power compared to lower-yielding ones.
And that doesn't mean giving up on capital growth. It's about strategically picking and managing your properties.
Even small changes like a quick reno, adding a granny flat, or getting a great property manager can bump up your rental returns.
Every extra percent in rental yield can mean tens of thousands more in borrowing capacity.
Think back to last month's newsletter HERE, where we’re building our property portfolio to $150,000 in passive income and we have the opportunity to invest $60K to add a massive $455K value!
Living Expenses: Your Secret Weapon
The most powerful borrowing capacity booster is probably the most overlooked: managing your living expenses.
I'm not talking about living on ramen noodles…..although it would help!
It's about being smart with your spending and paperwork.
Banks use standardised living expense benchmarks (the Household Expenditure Measure or HEM) unless you can show them you spend less.
By carefully tracking your expenses and looking for ways to optimise, you may be able to show the banks you have lower living costs.
Trimming your documented monthly expenses by $1,000 could add $50,000 or more to your borrowing capacity. That's huge on its own, but it gets even more powerful when you combine it with strategies like rentvesting or being picky about which property you buy.
Advanced Moves for Serious Players
If you're ready to get more sophisticated, some next-level strategies can send your borrowing capacity through the roof……
Rentvesting!
Renting where you live and buying investment properties, can slash your living costs while you build a portfolio.
Guarantor loans!
When set up right, can help you get into your first place without a huge deposit.
One of my favourites is
Debt recycling!
Turning non-deductible debt into tax-deductible debt by restructuring your loans. If done right, it can improve your tax situation and borrowing capacity.
Picking Your Moment
With interest rates looking like they might have peaked, we're in an interesting spot.
Banks are keen to lend and compete hard for business, with many options across the major banks, second-tier lenders, and specialist players.
Plus, borrowing capacities could go up as rates level out or start dropping again. So now is the time to get yourself in position by putting these borrowing power hacks to work.
That way, you'll be ready to pounce when the right opportunity pops up.
Think about it, when rates drop, what do you think is going to happen to the property market? All of a sudden people have more capital to invest and sentiment is good?
For people buying right now, I am not looking forward to the competition!
Building Your Dream Team
Successful property investors rarely go it alone.
Working with Pros who properly understand property investing can make all the difference. That means teaming up with brokers specialising in investment loans, accountants who know property tax inside and out, and Buyers Agents who can help you optimise your overall financial setup.
As your portfolio grows, these partnerships will become even more important. You want to sit down with your team regularly, not just at tax time, to figure out how to maximise your investment potential.
Time to Make Moves
Your borrowing capacity isn't set in stone.
With the right plan and the right team in your corner, you can systematically increase it over time. The key is to start with a clear vision of where you want to end up, then work backwards to map out the steps to get there.
When you're putting together your strategy, think about future life changes like career moves, starting a family, and your retirement goals.
Build in some flexibility so you can adapt to changes as the market and your own life throw curveballs your way.
And follow along as we build our $150K Passive Income Portfolio in public. Learn More What This Is All About Here.
Whether you're looking to get into your first investment property or ready to grow your existing portfolio, now is the time to start making some presidential-calibre moves to crank up your borrowing capacity.
These strategies have the power to change lives. So what are you waiting for?
Let's do this!
Property Tool Of The Month!
As you know, the property market is a balance of supply and demand.
Everyone says it, and we all know it's the truth!
The challenge in the Property world is trying to identify this imbalance, this is what separates the true 1% percent investors. That imbalance is what led us to W.A. three years ago, and if you bought where we discussed, you would've made $300,000+.
Well, we’re giving you one of the tools that can help you identify that imbalance and crush your property investing, without needing a PhD in data science.
The platform is Htag Analytics!
We managed to negotiate, because we're bloody great at negotiating! A massive 20% discount for our community. Which will be grandfathered in at the discounted rate going forward, even after they raise their rates in December.
But it’s only around for this week, so jump on now and save yourself from buying in a dud location!
Use the Code “Ausprop” to get access to 20% and invest like the top 1%!
That’s another Newsletter Wrapped up! Thanks for reading this Aus Property Investors Edition. Let us know your thoughts, share with friends & family to get the word out to the Property Crew! 🔥