What’s your leverage % today

hmm...let's see.. bought a unit, a CIP project...
Zero.

 

I think she meant on this forum. I doubt most people here are casual 1 to 2 IP's then quits. I could be wrong though.

 

Depends who the "don't we all" includes I guess.

If she means the top 30-40 most active posters then it's likely the majority of that concentrated bunch have gone hard early on,.I agree.

 

Not sure the answer should take into account everything or just the investment portfolio. We consider ourselves boring mum & dad investor, and we started in the late 80s. My husband and I are both full time employees.
- Just investment portfolio, currently we are on 70% LVR not taking into account the $ in the offsett a/c.
LVR was much less a few years back but we have cashed out some of the older ones in the last few years. We have always borrowed 100% for all IPs. LVR goes down as valuation goes up with time. We don't reduce/pay off investment loans unless the IP is sold. We have our cash in the Offset Accounts
- All our earnings/savings go to updating our home either moving to a better suburb (good school for the kids) and/or a better house, as we can afford. We keep LVR of our home to a minimum. As part of this process, we have done some small developments (splitting a block to build 2, 3 houses).
- Home has been free of debt for a long time now, Super Fund is more than maxed and investment portfolio is more or less self supported, so all good.
Except we now have to move to Sydney and potentially spend a fortune to buy a house over there !

 

It’s also worth noting on when people have built/leveraged their own portfolios as lending conditions have definitely changed in recent times impacting borrowers ability to build a large portfolio quickly…. my 3c worth

 

I believe you are correct most on this site would have hundreds of thousands of rental income.

 

Much harder to source finance since APRA

 

I thought you offloaded your CIP project?????

 

The sale should be going through soon, a few offers. Still contemplating the tax if I sell ...meanwhile builders nowhere to be seen.
And I may have lied when I said no more as it may be rolled into a JV which may need a loan...This is hard work

 

Starting to slowly sell US properties.
Should be zero lvr on completion with a decent share portfolio. I think I will give property away after this

 

I'll take a couple if you need some off your mittens.

 

I will take a freebie. Who can say no to Free.
MTR.

 

Interest rates up, watch your leverage

 

Just sold our biggest one. Which brings us down to zero leverage. The CGT makes me weep but the lack of debt is quite the consolation in this environment.

Looking forward to what the future holds. It's nice not to care what happens to your property values when you're just receiving rent...

 

Not yet..maybe soon...maybe.
Though it's not gonna decrease my leverage.

Wait till you get the feeling of looking at bank statements and now interest paid, no land tax, no rates. Much better than a Toyota.

 

I thought it is time for a 12 months update.
LVR 27%
Happy as Larry

Edit: Made an error - it is 27%

 

Have been at 0% for 3 years now. I have 3 unencumbered resi IP's as part of my retirement income, along with Super, ETF & LIC holdings.
At the height in the early 2000's around 66%.
Slow and steady has proved to be a successful approach I adopted over 30 years ago.

 

We’re looking to go to zero soon by selling our biggest property which will pay down/offset close to 10m of loans in one hit.
Just sold 2 IP’s recently for the first time in 20 years and a bit over property anyway so will likely keep selling down over the next few years but will probably keep the good ones for the long term.

 

Circa 60% and growing, I mean decreasing

 

I said nothing about margin loan. LOL it was LOC and DPP. Using 100% loans , puts and non recourse loans(downside protection) Again used other peoples money with LOC to pay 3 years interest in advance puts and fees to buy. eg.. bought 100k exposure to Dow Jones property Index for 20k that is that most I could loose, no margin calls with non recourse loans. 3 years later the100 k was worth 180k paid the loan back and put 80k in my pocket, only cost to me was 3 years interest , 3x tax deductable 1,500, you could get plans that pay coupons that that more than cover interest. I also use property for security even though one high growth portfolio is down 500k this CY, but that is good because I am now buying shares. The property securing the shares has increased 3m, I took out fixed loan of 640k for 2.4% for 3 years to spend. plus 900k from a property I am selling keeping loan as the other 3 properties securing it have enough equity. Will have LVR of just under 30% after property settlement, But value of asetts bought with loan will be higher than loan, and 3x drawn amount of loan.