Australian investors face a serviceability crunch from high interest rates and stricter lending rules. To borrow more, increase your income or pay down existing debt. These are the two levers you actually control.
One of the biggest roadblocks that you're going to be running up against is because of the serviceability crunch which is going on right now. Now that's occurred because of a few different reasons. Number one, interest rates are sky high. Number two, a lot of the banks have changed and adjusted their criteria to make it harder and harder to be able to get serviceability. The whole world of, you know, 10, 15 years ago in the Wild West of lending where we could go and get kind of 3, 5, 10 properties within a portfolio on someone who's earning $100,000, $150,000 a year, It's kind of something, a thing of yesterday. But what we've got to focus on doing as an investor is control our own actions and focus on what we can control. How do we increase our income? How do we reduce our debt? Which is going to allow you to increase your serviceability for the future.
