How much of a buffer do you have to service IPs

[rchad]

Just a broad question for discussion - for individuals with larger property portfolios e.g. 5 - 10 IPs how much of a buffer do you like to keep in place to support ongoing serviceablilty - obviously many variables exist re: portfolio - do you have any general rules of thumb that you draw from? From my experience it appears that the more confident some investors become as their portfolio increases the smaller the buffer they are comfortable to risk manage...

 

[Welcome]

My minimum buffer is 12 months interest shortfall + living costs. Think wouldn't have SANF without that as a minimum.

 

[Rolf Latham]

I like my clients to have at least 5 to 10 % of the portfolio value in either cash, or licuid assets

ta
rolf

 

[Welcome]

Rolf,

Is that %age of the gross asset value or net asset value?