Investment Loan Pre-Approval Checklist for Teachers
TL;DR Investment pre-approval is stricter than owner-occupier. Lenders assess at the actual rate plus 3%, shade rental income 20% to 25%, and apply tighter property type and location policies. Core documents include two forms of ID, recent payslips, PAYG summary, 3 to 6 months of bank statements, statements for every debt, and deposit source evidence. […]
Positive vs Negative Cash Flow Investment Properties for Teachers
TL;DR Cash flow is driven primarily by the yield-to-rate gap. Metro properties yielding 3% to 4.5% default to negative at current rates around 6.35%, while regional properties yielding 5% to 7% can run positive after costs. Positive cash flow suits teachers with variable income, tight weekly surplus, shorter time horizons, or those approaching retirement. It […]
Negative Gearing for Teachers: How It Works with Your PAYG Income
TL;DR Negative gearing reduces the cost of a property loss but doesn’t eliminate it. A teacher at 37% marginal rate recovers only 37 cents of every dollar lost; the rest comes from salary or savings. Only loan interest, management fees, rates, insurance, eligible repairs, and depreciation are deductible. Principal repayments and property improvements are not, […]
Interest-Only vs Principal and Interest Investment Loans for Teachers
TL;DR Interest-only only wins when the cash flow saving is deployed productively. Without an offset, redirected debt reduction, or reinvestment plan, you’re paying a rate premium to preserve tax deductions that debt reduction would have eliminated anyway. The strongest case for IO is teachers with a PPOR mortgage and offset account, where freed cash flow […]
Rentvesting as a Teacher: Buy Where You Can Afford, Live Where You Want
TL;DR Rentvesting means applying for an investment loan, not a home loan. Expect rates 0.2% to 0.4% higher, rental income shaded 20% to 25% for serviceability, and tighter policy than owner-occupied lending. Buying an investment property first typically disqualifies you from the 5% Deposit Scheme, state grants, and stamp duty concessions, potentially forfeiting $30,000 to […]