{"id":118608,"date":"2023-10-06T01:15:12","date_gmt":"2023-10-05T14:15:12","guid":{"rendered":"https:\/\/timesnewsgroup.com.au\/surfcoasttimes\/?p=118608"},"modified":"2023-10-05T09:31:17","modified_gmt":"2023-10-04T22:31:17","slug":"the-importance-of-financial-planning","status":"publish","type":"post","link":"https:\/\/timesnewsgroup.com.au\/surfcoasttimes\/real-estate\/the-importance-of-financial-planning\/","title":{"rendered":"The importance of financial planning"},"content":{"rendered":"

For those looking to expand their investment portfolio and delve into more real estate ventures, a unique financial situation may surface, often known as “asset-rich but income-poor”.<\/p>\n

This situation raises questions about the intricacies of borrowing, especially when the investor holds substantial assets but lack the necessary income to secure the loan required.<\/p>\n

So, what exactly does it mean to be asset rich but income poor?<\/strong><\/p>\n

To be asset-rich implies that you have significant assets such as property holdings, stocks, a few cars, maybe even a caravan and a boat or substantial savings in your bank account.<\/p>\n

Yet, despite your solid financial foundation, your income, whether from employment or self-employment, may not be sufficient to meet the loan requirements for your property investment goals.<\/p>\n

In a situation like this, it’s essential to explore strategies to leverage your existing assets to boost your income potential.<\/p>\n

Our brokers can provide valuable guidance to ensure you’re on the right path and making the most of your financial portfolio.<\/p>\n

But why can’t I secure a loan based on my assets alone?<\/strong><\/p>\n

In the past, having a substantial asset base was often sufficient to secure a loan. However, recent changes in regulations have altered the lending landscape.<\/p>\n

Nowadays, lenders not only assess your assets but also consider your income when determining your eligibility for a loan.<\/p>\n

They employ various metrics, including:<\/p>\n