Todd PolkeInvestment Strategist l Wealth Coach l Speaker, Todd Polke · Investment Strategist l Helping Investors and Business Owners grow their Wealth Faster

Unlock your true income potential by knowing the best use of your #capital. #australia #australia

14 Aug 2023 · 0 min

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In this segment, the speaker advises investors on using personal capital to generate passive property income, highlighting that pulling equity can reduce loan serviceability. He stresses the importance of first confirming whether a proposed land purchase and construction project is viable from a lending perspective. He then suggests evaluating the strategy of building a rooming house and asks whether this represents the highest and best use of the capital, urging a systematic assessment of financial feasibility before proceeding.

Do I take my capital? Because you want to generate a passive income from property, but as you do that, it's going to chew up all your serviceability. So you're going to pull the equity out, it's going to chew up your servicing. What you have to go and ask the question around when you think about that strategy is, if I go do this, buy this land and build, can I do it from a lending standpoint to begin with? And then go do a rooming house. Then I'm asking the question, is that the highest and best use of capital? That's the next question I'm asking.