WORKED EXAMPLE · Property investors
Planning the next purchase with the whole portfolio in view
Worked example: an illustrative scenario, not a client result.
A hypothetical investor explores why equity, cash flow and loan structure need to be considered together.
Property investors · 2 min read
The objective
Imagine a property investor with an existing home loan, an investment property and a plan to buy again. The objective is the next purchase.
The complication
They can see equity on paper, but do not yet know how the next purchase would affect repayments, cash reserves or future borrowing options.
What changed by lender
Same borrower. Same property. Different lender policy can produce very different outcomes.
This example does not report a lender-by-lender result, and I have not invented one. What I would compare across lenders is:
| What I compare | What it tells me |
|---|---|
| Lender assessment | How each lender would assess the existing loans, securities, income and expenses |
| Total costs | What each option would cost overall |
| Repayment obligations | What the investor would be committed to repaying |
| Flexibility | How much room the structure leaves for the next decision |
Options considered
- Option A — Go ahead with the purchase: use one of the feasible options, with the conditions attached to it understood first.
- Option B — Change the purchase budget: depending on what the comparison shows, this may be the more suitable next step.
- Option C — Wait: the same applies; waiting may be the more suitable next step.
The strategy
In this example I would start with the whole portfolio: the existing loans, securities, income, expenses and available funds. I would then compare the feasible options for lender assessment, total costs, repayment obligations and flexibility. Questions about ownership and tax treatment go to the client’s accountant and legal adviser alongside the lending review.
No lender or structure is selected in this example. The strategy is the sequence of work, not a choice of product.
Credit assistance is not tax, legal or financial product advice. Where your question turns on tax treatment, ownership structure or superannuation law, I work alongside your accountant, solicitor or licensed adviser.
The outcome or current stage
This is a proposed assessment pathway, not an approval or settlement story. The useful output would be a comparison of feasible options and the conditions attached to each, including the possibility that waiting or changing the purchase budget is the more suitable next step.
Christine’s view
Usable equity and borrowing capacity are separate questions. I look at a structure against the next decision as well as the immediate purchase.Christine Junidar
Worked example: an illustrative scenario, not a client result.
General information only. It does not take your objectives, financial situation or needs into account. Lending is subject to lender assessment and criteria. This is not a quote or an offer of credit.
Individual results vary. Any figure shown reflects one set of circumstances at one point in time and is not a prediction of what you will be approved for.
Individual circumstances and lender policy apply; this is not a guarantee of a similar result.