Rental Yield Won’t Boost Your Borrowing Power
Tue Feb 03 2026
In this episode of The Property Nerds, we break down one of the most common investor assumptions: that chasing a higher rental yield will meaningfully boost your borrowing capacity.
Plus, we unpack a timely SMSF lending update that could change how some investors think about leverage and diversification: 90% LVR options without risk fees, and what that may mean in practice.
If you’ve been filtering suburbs based on yield, this episode is your reset.We cover:
1. Why yield obsession usually shows up too late and why it rarely moves borrowing capacity the way people think
2. How a 0.5% yield increase can equal only a modest borrowing bump once banks shade rent and apply DTI limits
3. The bigger levers that actually scale portfolios: income, strategy, savings rate, and lending options
4. What’s changing with higher LVRs and no risk fees, and why it matters for liquidity and diversification inside the fundTimestamps:
00:00 – “If you’re stressing about yield… it’s probably too late”
01:10 – Rental yield impact on borrowing capacity: the big misconception
03:17 – Why a higher yield feels logical
06:01 – The hidden cost: fewer markets, longer search time, missed upside
07:48 – “Cash flow isn’t king”
10:00 – Why higher prices often mean lower yields
11:01 – Fixed costs don’t scale like prices
16:30 – Why negative cash flow is more normal now
18:41 – Growth vs cash flow framing
21:05 – 90% LVR options and what’s changed
22:16 – Why that’s a meaningful difference
24:00 – Stop chasing yield, start building strategically
If you’ve been telling yourself “I just need a higher yield first,” this episode will help you zoom out, run the real numbers and focus on the variables that actually move the needle, without delaying your next purchase for the wrong reason.
CONNECT WITH THE PROPERTY NERDS:
Instagram:https://www.instagram.com/thepropertynerdspodcast/
TikTok: https://www.tiktok.com/@thepropertynerdspodcast
CONNECT WITH FOURACRE FINANCIAL:
Instagram:https://www.instagram.com/fouracre.financial/
Linkedin: https://www.linkedin.com/company/fouracre-financial/
Website: https://fouracrefinancial.com.au/
CONNECT WITH ARJUN:
Instagram: https://www.instagram.com/arjpaliwal/
Linkedin: https://www.linkedin.com/in/propertybuyersagent/
CONNECT WITH INVESTORKIT:
Instagram: https://www.instagram.com/investorkit.com.au/
Linkedin: https://www.linkedin.com/company/investorkit/
Website: https://www.investorkit.com.au/
This Podcast was Recorded & Produced by KYU Media. For Production related inquiries please get in touch with us at https://kyumedia.com/
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In this episode of The Property Nerds, we break down one of the most common investor assumptions: that chasing a higher rental yield will meaningfully boost your borrowing capacity. Plus, we unpack a timely SMSF lending update that could change how some investors think about leverage and diversification: 90% LVR options without risk fees, and what that may mean in practice. If you’ve been filtering suburbs based on yield, this episode is your reset.We cover: 1. Why yield obsession usually shows up too late and why it rarely moves borrowing capacity the way people think 2. How a 0.5% yield increase can equal only a modest borrowing bump once banks shade rent and apply DTI limits 3. The bigger levers that actually scale portfolios: income, strategy, savings rate, and lending options 4. What’s changing with higher LVRs and no risk fees, and why it matters for liquidity and diversification inside the fundTimestamps: 00:00 – “If you’re stressing about yield… it’s probably too late” 01:10 – Rental yield impact on borrowing capacity: the big misconception 03:17 – Why a higher yield feels logical 06:01 – The hidden cost: fewer markets, longer search time, missed upside 07:48 – “Cash flow isn’t king” 10:00 – Why higher prices often mean lower yields 11:01 – Fixed costs don’t scale like prices 16:30 – Why negative cash flow is more normal now 18:41 – Growth vs cash flow framing 21:05 – 90% LVR options and what’s changed 22:16 – Why that’s a meaningful difference 24:00 – Stop chasing yield, start building strategically If you’ve been telling yourself “I just need a higher yield first,” this episode will help you zoom out, run the real numbers and focus on the variables that actually move the needle, without delaying your next purchase for the wrong reason. CONNECT WITH THE PROPERTY NERDS: Instagram:https://www.instagram.com/thepropertynerdspodcast/ TikTok: https://www.tiktok.com/@thepropertynerdspodcast CONNECT WITH FOURACRE FINANCIAL: Instagram:https://www.instagram.com/fouracre.financial/ Linkedin: https://www.linkedin.com/company/fouracre-financial/ Website: https://fouracrefinancial.com.au/ CONNECT WITH ARJUN: Instagram: https://www.instagram.com/arjpaliwal/ Linkedin: https://www.linkedin.com/in/propertybuyersagent/ CONNECT WITH INVESTORKIT: Instagram: https://www.instagram.com/investorkit.com.au/ Linkedin: https://www.linkedin.com/company/investorkit/ Website: https://www.investorkit.com.au/ This Podcast was Recorded & Produced by KYU Media. For Production related inquiries please get in touch with us at https://kyumedia.com/