How to I calculate LVR?

[Toni]

I have been reading about how lvr'd people are at the moment, but am at a loss as to how to calculate this. Can anyone please explain this to me.

Thanks

 

[Sim]

LVR is "Loan to Value Ratio" ... you calculate this by adding up all of your loans and dividing this number by the value of all your property.

Eg:

Property 1: loan $150K, value $200K
Property 2: loan $180K, value $250K

LVR = Loan / Value = (150K + 180K) / (200K + 250K) = 330K / 450K = 73.3%

 

[Spectre]

As sim said and also
if you had 2 properties, and a loan on one at cba and a loan on another at anz, then you might work the equation seperately/per property.

So one property might have a 20% lvr and the other at 95%.

Depends on the figures

 

[Ridin-High]

assets divided by liabilities = lvr

 

[Pushka]

So this would include PPOR? And what is a 'good'- ie less risky %, just as a benchmark.

 

[LynnH]

Pushka,

I believe Bill Zheng is recommending that investors stick to a maximum LVR of 75% - and preferably less than 70% - in the current climate. I guess it's all about an individual's SANF, really - and, FWIW, I'm finding my SANF requires a lower LVR the higher my age gets!!!

Cheers
LynnH

 

[Dazz]

FWIW, I'm finding my SANF requires a lower LVR the higher my age gets!!!

So, JTR, when LVR is LTO, the SANF is OK, but when LVR is MAX, FWIW the SANF is RS.

 

[LynnH]

Dazz

Gotta admit the "JTR" and "LTO" bits have me scratching my head! (Must be the 'old timers' disease my girls reckon I suffer from!)

Cheers
Lynn

 

[Dazz]

Oh Lynn, haven't you heard, it's ever so uber-chic to clip your Vocab. nowadays so that only the clique few can partake. Exclusivity babe - exclusivity !!!

For those who aren't uber.....

just to re-iterate
less than optimal


Tata darlings.

 

[LynnH]

Thanks, Dazz! Will have to tell my girls that it's 'official': I am definitely NOT uber-chic - they will absolutely ROAR laughing!

Cheers
Lynn

P.S. Good to see that you're in such fine form today!

 

[Toni]

Thanks, Dazz! Will have to tell my girls that it's 'official': I am definitely NOT uber-chic - they will absolutely ROAR laughing!

Cheers
Lynn

P.S. Good to see that you're in such fine form today!

Thanks everyone for your answer, I am so pleased though that I am not the only one who is trying to play catch up. My memory is not all that great in my later years and I fear this newly obtained info may not remain there for long, but I am trying really hard to retain as much as I can

Dazz and LynnH, I am definately not "uber-chic" either, you have both made my night, I haven't laughed like that for a long time. Currently have a 14 y.o. locked in her bedroom, apparently I'm too old to understand. This is just what I needed

Have a great night!

Toni

 

[Pushka]

Currently have a 14 y.o. locked in her bedroom, apparently I'm too old to understand. This is just what I needed

Have a great night!

Toni

Entirely normal behaviour for a 14 year old. Fortunately it gets a lot better when they hit 21! Only 7 years to go!

 

[LynnH]

And (much as I love the darlings) - they become even more civilized when they leave home!!!!! D

Cheers
LynnH

P.S. Glad to hear you had a good laugh, Toni!