This is how to optimise the use of your borrowing capacity

Oct 04, 2019

The amount of mortgage debt that you can carry these days is likely to be constrained to an approximate ratio of your total income.

Given that this is now the case, it’s more important than ever to optimise the use of your borrowing capacity rather than wasting any of it with dud assets.

How, then, to get the best bang for your bucks?

The one thing you can never change about a property is its location – it is forever fixed in place – so what must come first is finding a quality location, walkable to all key amenities, and with strong connectivity to one of the major employment hubs.

The second thing to look for is a high and growing land value, and ideally a land-to-asset ratio of at least 50%, or preferably higher.

Over the full life of an investment it is the appreciation in the land value that will do the bulk of the heavy lifting for you.

And thirdly, if you can find a property with an extra dimension whereby you can add further value to it later, then this makes for the best of all worlds.

I discussed this a little further in the short video here

Whenever you’re ready… here are 4 ways we can help you manage your own money and go next level wealth:

  1. Boom or Bust in 2021 – 20 minute online workshop for investors

Register for my next free online training - Boom or Bust? How to change your investment plan for 2021 - book in here

  1. Subscribe to our Top 100 Podcast for Investors

 Listen in to our new podcast - The Low Rates High Returns Show - Apple Spotify , SoundCloud

  1. Join our Implementation Program

We’re putting together a new coaching case study group this month for private investors. If you’d like to get the plan, tools and timeless principles for managing your money and creating next level wealth … just send an email to [email protected] with the word “Case Study” and we'll get you more details.

  1. Work with me privately

If you’d like to work directly with me and Stephen Moriarty directly to help you map out and action your next level wealth plan… just send an email to [email protected] with the word “private”… tell me a little about your situation and what you’d like help with, and we’ll get you all the details!