THE PROPERTY NERDS: 80% refinance: The untold advantage?

In this episode of The Property Nerds, Arjun Paliwal, Jack Fouracre, and Adrian Lee explore the evolving landscape of property investment, focusing on regulatory changes, lending policies, and market dynamics shaping investor strategies.

The discussion highlights the Australian Prudential Regulation Authority's (APRA's) new policy limiting high-risk investor lending to 20 per cent of banks' portfolios, potentially shifting opportunities toward brokers and non-bank lenders.

The trio emphasises the importance of maintaining a long-term perspective, as life changes and cash flow constraints can affect borrowing capacity despite debt-to-income (DTI) ratios.

Strategies such as rentvesting are discussed as ways to maintain a DTI under six while building a property portfolio.

Lender Mortgage Insurance (LMI) waivers and extended 40-year loan terms are highlighted as tools that can reduce upfront costs and increase borrowing flexibility.

Additionally, the discussion addresses the nuances of shading rental income in DTI calculations, helping investors understand their true borrowing capacity.

The co-hosts stress that professional guidance is critical for navigating regulatory shifts and optimising investment decisions.