what buffer do you keep

Discussion in 'Investment Strategy' started by Seal, 28th Apr, 2016.

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  1. Omnidragon

    Omnidragon Well-Known Member

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    Lots of buffer. I'd have enough cash to last over decades of interest repayments at these rates and IO. This is a very indebted country and those not prepared will be caught out badly
     
    Omnidragon, 10th Jun, 2016
    #81
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  2. Azazel

    Azazel Well-Known Member

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    So what does avuncular mean?
     
    Azazel, 10th Jun, 2016
    #82
  3. Mumbai

    Mumbai Well-Known Member

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    Alta Vista it
     
    Mumbai, 10th Jun, 2016
    #83
  4. Greyghost

    Greyghost Well-Known Member

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    The shrapnel tin.. Haha
     
    Greyghost, 10th Jun, 2016
    #84
  5. Azazel

    Azazel Well-Known Member

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    I've only got Funnelweb :(
     
    Azazel, 10th Jun, 2016
    #85
  6. Ted Varrick

    Ted Varrick Well-Known Member

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    A shift in interest rates could negate that cash flow, assuming that shift was up. But then a shift in interest rates down could add to that cash flow, with the (maybe) offset account filled up faster. And imagine what a 2nd job at Micky D's do to help. Thanks Ronald. Thanks Hamburglar. Happy for Robert Kyosaki to add his name to a new book called "Rich Burger. Poor Burger." assuming his commission is minimal...
     
    Ted Varrick, 12th Jun, 2016
    #86
  7. Ted Varrick

    Ted Varrick Well-Known Member

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    But what if it's not? What if it's overrun by cashed up Chinese (or any other cashed up..) uni students who are complaining about the lack of space to park their Porsches?

    The price will go up and you will have to start doing deals with some of your neighbours in regards to subletting their garage space.

    Sure, it might be a stressful experience, but nothing that can't be overcome.
     
    Ted Varrick, 12th Jun, 2016
    #87
  8. Cash Flows

    Cash Flows Member

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    Not quite sure what you are trying to say here. If it's not vacant and you are so positive about it then you don't require any buffer.... ever.. we all know that this very rarely happens

    Point of this thread is what buffer do you keep in case there is an issue...
     
    Cash Flows, 12th Jun, 2016
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  9. Ted Varrick

    Ted Varrick Well-Known Member

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    Fair enough. But if you have 3 months revenue as a buffer, what does if matter if it's vacant? But preferably not..
     
    Ted Varrick, 12th Jun, 2016
    #89
  10. Johnny Cashflow

    Johnny Cashflow Well-Known Member

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    Good position to be in
     
    Johnny Cashflow, 12th Jun, 2016
    #90
  11. big max

    big max Well-Known Member

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    I keep a very big buffer. But it's primarily to allow me to take advantage of any big correction, whether is be property or stock if/when that comes along.
     
    big max, 12th Jun, 2016
    #91
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  12. Omnidragon

    Omnidragon Well-Known Member

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    Yea. In fact I'm thinking of going debt free with probably one more sale. I have a feeling some American sharks are circling our currency and debt/GDP these next 18 months.
     
    Omnidragon, 13th Jun, 2016
    #92
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