Poll: Cash buffer

I have a cash buffer equivalent to 1 years mortgage payments for the whole portfolio, offset against my PPOR

 

Aiming for 10% but I am close enough in cash.
As well as having a job salary to go with it. It isn't really a struggle.

 

I have a buffer of about 7% against a PPOR and two IP loans.

Ideally I would like this to be a lot higher as I still have PPOR debt so will throw everything into my offset account.

In hindsight I would have been better off paying down my PPOR debt instead of buying IPs and taking on more debt.

 

I understand the value of keeping cash bufffer very well for property potfolio and for shares (investment opportunity can show up any time). But maintaining certain % is not very easy hence I use my risk profile based on my job and forcast for unforseen circumstances using "what if" scensrios to decide the buffer and for me bare minimum 6 months mortgage repayments for ppor and ips + 10K sits in the offset attached to my ppor. If I have more fir sure it is going in offset too.

I do admire people who have good amount of cash buffer but being in my age where I want to grow my portfolio and invest for positive stream of income at later stage, I must take calulative risks and invest as much as i can without dangering/impecting the family and daily routine.

"I was reading another thread where someone has $1.6 mill as a cash buffer or some keep some powder dry to buy shares when the market goes down."

After reading the above type of statements I wonder what am I doing wrong that I do not have that much money laying around-I work full time , do not waste money, always check prices at few places when I buy something, look for deals, grocery or other shoping in Aldi/kmart, pay bills on time, no cc debt and then I left with very small % that goes into offset.

But the truth is people who have huge % of cash might be on a different stage of life and their circumstances and the journey to get there might vary because they might be at a different pace/timeframe.

Surples money is always good and I know one day I will have

 

Mine is bad - probably in the 0-5% option. Not enormous cashflow left over after bills and loans - most of the "wealth" is tied up in the investments.

 

We have an an LVR of just under 30% and keep a buffer of approx 500k with quick(ish) access (3 months) to 4 times that if needed. Our SANF is set to snoring.

 

Got a decent buffer made almost entirely of banks lending too much in the pre-APRA days, thats just sitting in the highest interest offset. Glad I didnt touch it or do something immature like buy a prestige car.

Borrow as much as you can when banks are irresponsible and sit on the funds for when another investment opp comes up.

Enough to last a couple of years of bad circumstances.

 

This is more likely what most do.... ie. cashflow buffer to service X period of time. It is more relevant IMHO than % of debt.