NZ 1st homebuyers are ScReWeD...

[JBmurc]

@JBMurc, I think you've answered most of your own questions. Borrow enough to buy, tenant that, architect designs the improvements and extensions, borrow more on that, build it and tenant it, borrow on the equity, pay only interest, rinse and repeat. Thing is, you're not just a property developer/landlord, you have other things going on that banks don't like and won't lend while you do. Don't take it personally, just ask them what you're doing that they don't like, they'll tell you and you can decide to become a property magnate or continue doing what you do without them.

Trading the sharemarket LOL >>> that and I'm no longer in my 20's ... couple kids wife etc ....I have tried to dig into the whole loan capacity issue with different banks .. but the managers are very hard to pin down what I need to do to impress them to increase my lending book ..its always on a case to case basis and depends on the banks book etc ..

SBS 12yrs+ ago I sat down with the main office business manager and he told me if my company could put in three solid years of profits they could use up to 50% on the profitable income into the ability to service debt ...

At present they can use are debt free family home as equity ,,and as I'm now a full time trader(through my company) I'm looking at my fourth year of sizeable profits ... will be interesting to see how the banks are to deal with next year .. I would like to remove our personal home as security for the company loan and have the companies own income take up the loan..