What’s your leverage % today

I am one of those non-serious investors .

Leverage is the only way I can make property work. I have NEVER feared good debt (bad debt scares the pants of me).

I fear the day when my LVR = 0% as I know I could be getting better returns on my assets.

Current LVR:

• Against property 18% (49% five years ago)
  
• Against total assets 10% (31% five years ago)

Need a good old property crash before these numbers hit zero

OK, this old sucker is off to grab a pensioner nap .

 

Now that's a notion that scares me shirtless!

 

New investor here

73% LVR with my two new purchases (only paid 10% deposits on those, so that also impacted LVR), PPOR and first investment property (an apartment)

My PPOR is helping bring the portfolio LVR down (ironic as I also only paid a 10% deposit at the time!) - it’s sitting at ~55%

 

I am very new so my real estate investment is sitting around 80% LVR, but drop down to below 50% if including PPOR, and a bit lower if including cash in offset, and below 40% if we include shares.

However a more interesting question is why you have that LVR - many people here have low LVR and they have been investing for a long time as some said so you don’t need to borrow much:

1. You don’t need to increase your portfolio anymore, you are at the tail end of your investment journey so don’t need to borrow more
2. Or you think the current environment is risky and you want to lower the LVR at this time
3. Or you hit DTI / servicing ceiling so can’t borrow more

I am mostly #3 but also risk tolerance so keep it at that level at this time. So somewhat 3&2 for me. LKeen to hear more.

 

@Alex AB, I am #1 and #2, #3 is not even on my radar.

When interest rates go up and property “comes off the boil”/drops significantly, I could be tempted to come back for a purchase.

I have already stopped purchasing twice and both times came back and bought .

 

Can we look at it from another angle. What was the highest LVR you were once sitting at?

Doshman

 

Gotta love boom cycles

buying, net wealth increasing but leverage pretty much staying the same

 

Gotta hate boom cycles

Property values going up, rates going up, land tax going up, rent going up, income tax going up, CGT going up, …

Gotta get out of this crazy game

 

Everything going up but......

 

Speak for yourself!!!

My maturity is still going up

 

The power of leverage is a beautiful thing

Dont we all go hard in the beginning??? ….

 

Not everyone does. Many just buy 1 or max 2 and then freak out with the debt.

But yeah I went guns blazing and totally obsessed for like 10 years non stop before I came up for a breather before going nuts for another 5 years.

 

I am one of these - i borrowed heaps more in retirement than when I was working.

 

when I started investing I was fortunate to be able to access easy money, low doc and no doc. went hard and loaded up, the good old days

 

I'm gearing towards my 'second coming' where I hope I can go on another spending spree. I went hard and fast during the pre-APRA days and eventually had to sit on the sidelines for a couple of years until I was in a position to accumulate again.

 

I am still the same as 2021. Nothing have changed in my LVR - 30%
plotting along... kinda boring - I feel I should do more.
I am focusing on my health and business in 2022.
No point if I am sick or dead in 2022.

 

I think I should do more too, but I cant be bothered going hard. I am enjoying a slower pace.

 

53%

I need another property lol