What’s your leverage % today

Discussion in 'Living Room' started by MTR, 13th Jun, 2021.

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  1. MTR

    MTR Well-Known Member

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    Wondering with boom cycles happening everywhere and low interest rates….are investors going gang busters and loading up.

    I worked out I am currently at 30% LVR.
     
    MTR, 13th Jun, 2021
    #1
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  2. The Y-man

    The Y-man Moderator Staff Member

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    Effectively around 1.26%

    The Y-man
     
    The Y-man, 13th Jun, 2021
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  3. MTR

    MTR Well-Known Member

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    omg, practically no debt with offsets?
     
    MTR, 13th Jun, 2021
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  4. The Y-man

    The Y-man Moderator Staff Member

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    It's a bit convoluted - but that's basically the figure we'd get if we kept all properties but sold off all shares and comm prop trusts to pay down the debts.

    As it stands, the figure takes entire asset base as
    (reis prop + shares + comm prop trusts)

    The Y-man
     
    The Y-man, 13th Jun, 2021
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  5. Lizzie

    Lizzie Well-Known Member

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    We sit at around 23% - but aim to get that down by selling some, and continuing to pay off debt while interest rates are so low ... should be 0% within the next 3-4 years while hubby is still working
     
    Last edited: 13th Jun, 2021
    Lizzie, 13th Jun, 2021
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  6. MTR

    MTR Well-Known Member

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    Sounds like a good plan
     
    MTR, 13th Jun, 2021
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  7. Gen-Y

    Gen-Y Well-Known Member

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    I am sitting on LVR 36%
    So comfortable and almost lazy.
     
    Gen-Y, 13th Jun, 2021
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  8. MTR

    MTR Well-Known Member

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    Great

    I feel the same… comfortable at 30% lvr, could sell down and reduce debt, but no need at this point in time

    See how it all pans when interest rates rise
     
    MTR, 13th Jun, 2021
    #8
  9. spludgey

    spludgey Well-Known Member

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    Just over 50%.
    I'd bump it up to 80% in a heartbeat, if I found a lender with reasonable rates that would let me.
     
    spludgey, 13th Jun, 2021
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  10. 2FAST4U

    2FAST4U Well-Known Member

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    Around 67%. Happy to stay on the sidelines now and pay down some debt.
     
    2FAST4U, 13th Jun, 2021
    #10
  11. Tillie

    Tillie Well-Known Member

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    0% - got lazy and we are currently thinking what to do next?
     
    Tillie, 13th Jun, 2021
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  12. Lacrim

    Lacrim Well-Known Member

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    45% (from 55%) but largely attributed to the current boom. Waiting patiently for rent increases to follow.

    Safe zone is circa 35% or less. I doubt (further) boom conditions will get us there this cycle....so it'll have to come from debt reduction.
     
    Lacrim, 13th Jun, 2021
    #12
  13. Sackie

    Sackie Well-Known Member

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    Was at 20% for resi stuff but back upto 35%.

    But once these puppies sell, will be below 20%.


    Trading account leveraging upto 2000%:D
     
    Sackie, 13th Jun, 2021
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  14. Ruby Tuesday

    Ruby Tuesday Well-Known Member

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    Went from about 25% 2 years ago to 15% last month, took out a new loan on a couple of unencumbered properties so back to 25%. 25% seems to be the sweet spot. May sell another crappy yielder that would bring it back to 14%, possibly buy a better yielder then increase to around 20%. Also got about 30% additionally internally leveraged.
     
    Last edited: 13th Jun, 2021
    Ruby Tuesday, 13th Jun, 2021
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  15. euro73

    euro73 Well-Known Member Business Member

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    Offsets count as debt as far as lenders are concerned .
     
    euro73, 13th Jun, 2021
    #15
  16. WattleIdo

    WattleIdo midas touch

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    Wow, good question 'cause I haven't thought about it for ages. Down to about 42% now or possibly lower.
     
    WattleIdo, 13th Jun, 2021
    #16
  17. samiam

    samiam Well-Known Member

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    65%, hoping to be less than 50% in next few years
     
    samiam, 13th Jun, 2021
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  18. Casteller

    Casteller Well-Known Member

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    About 15% across all assets. Markets feel frothy don't want too much leverage the moment.
     
    Casteller, 14th Jun, 2021
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  19. MTR

    MTR Well-Known Member

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    Yes I know
     
    MTR, 14th Jun, 2021
    #19
  20. Piston_Broke

    Piston_Broke Well-Known Member

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    If I count LOC even though not drawn about 10%.
    If I count actual loan without offsets, about 3%.
    Another month without thousands of dollars being paid to the banks, and a few thousand per month less in land taxes...Bliss :cool:
     
    Piston_Broke, 14th Jun, 2021
    #20
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