Ed
👤 SpeakerAppearances Over Time
Podcast Appearances
But we've still got this pesky LVR situation, right?
So they can borrow more, but it's the deposit side.
So what could they do to get that across the line?
Yeah, so mortgage reduction of 50K or increasing the value by 40K.
Okay, so we're going to put the mortgage up because they're borrowing money in order to do the renovations.
Then he's going to do it.
That's going to mean we now pass the LVR test, which is really cool.
Oh, what's happened?
Well, wait a second.
I haven't finished my point yet, which is they've just got enough to be able to pass that LVR test.
So right on 550.
But hang on a minute.
Oh, I love this.
This is such a good example.
I'm glad we did this one, Andrew.
So because they borrowed more money to renovate the property, they've now got more debt.
And that means that they need to earn even more income in order to be able to buy the rental.
Can they pay off their credit card?
Oh, they potentially could actually, did I put the credit card in here?
I might've forgot.