Video: 5 steps to (safely) maximise your borrowing power

Below is a recording of a webinar hosted by Stuart Wemyss & Jarrod McCabe from Wakelin Property Advisory on 12 August 2020 (the audio for this webinar is also available on the Investopoly podcast). Here’s a time stamped table of contents to allow you to jump to the sections that interest you the most:

4:10 Why investing is a game of finance, not assets
7:40 Mathematical proof of the power of using debt in an investment strategy
12:20 How borrowing has changed over the past 5 years?
18:00 Two factors which dictate your borrowing capacity
19:30 Overview of the 5 steps to maximising your borrowable equity
21:15 How to proactively maximise your capacity [serviceability]
38:00 How to maximise property valuations by the bank [security]
55:20 Borrowing strategies for income-rich, asset poor investors
59:15 Q&A

You can download the presentation slides here.

Successfully building wealth is more of a game of finance than it is investing. Access to investment capital is critical. Being locked out of the lending market will put the brakes on your investment plans. The cost of these ‘missed opportunities’ can be substantial and compounding. 

For example, being able to safely acquire one additional investment property could add an additional $1 million in net worth in today’s dollars in 20 years.

It’s been well-documented that the lending market has changed a lot over the past few years. Covid-19 has further complicated matters. Consequently, finance is no longer abundant, like it was 10 years ago! 

To maximise your access to investment capital you must (1) learn the rules of the lending game and (2) how to play them to your advantage.

The above presentation covered:

  • Why borrowing capacity is your scarcest financial resource
  • The 5 steps to maximise your borrowable equity
  • How the pandemic is affecting borrowing capacity
  • How to maximise your bank valuations
  • And there should be enough time to answer your questions after the presentation.