...or in market techno-speak, x interest cover
In this market, the maturity profile of debt is even more important.
Alex
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...or in market techno-speak, x interest cover
I don't believe this at all. No debt basically limits profit.
Using funds at hand could have reulted in a before tax profit this year of $125k profit.
By borrowing at what is a conservative level in our opinion, and given that there is enough money in the bank for 5 years of mortgage payments (not taking into account rent) for brand new properties within 15km of Brisbane .
The before tax profit will be closer to $500k.
I think generalising is never good, its weighing up LVR, servicability and the quality of the property.
Hi Alex I am not sure what "maturity profile of debt " means, could you explain pls. ta?
i have >$500 on my CC with a $35k limit.....CC's = bad debt.
Thanks Alex.
Talking about debt. I saw a fin planner this morning (recommended by a friend) he was very uncomfortable with my debt eventhough my lvr is <50% and I also have a large LOC as buffer. Seemed he only looked at the debt amount not LVR. His recommendation for me is not to get into more debt (which meant no business for him). I think he is very genuine but a bit too conservative ?
Is he an investor in property? That could be clue.
$2.5 mil, I consider myself inexperienced when compared to you or many other investors on SS. The reason I said I was surprised is because there are so many seasoned investors on SS and many will have massive debt (in a good way). I read somewhere Ed Chan has a net worth of $35 mil.Oasis, how much debt do you have?
$2.5 mil, I consider myself inexperienced when compared to you or many other investors on SS. The reason I said I was surprised is because there are so many seasoned investors on SS and many will have massive debt (in a good way). I read somewhere Ed Chan has a net worth of $35 mil.