I had two properties in which my LVR overall was 69%. I have just purchased my third by using some of the equity and got a loan for 90% on said property. This has brought my total LVR to 83%. My broker believes I should maintain a 90% LVR in order to "maximise" my accumulation of property.
I don't feel comfortable with this unless the cashflow from the properties can cover a certain portion of the debt every month (in the event I lose my job or whatever).
So my question here is, what % of overall LVR would the investors here feel comfortable with? Is 90% overall leaving little margin for errors? I won't be going for 90% overall, in fact I'm on my way to lowering the debt to about 70-75%.
Yes, the accumulation phase will be slower, but perhaps the point is that you actually REACH the end.
What are your thoughts?
I don't feel comfortable with this unless the cashflow from the properties can cover a certain portion of the debt every month (in the event I lose my job or whatever).
So my question here is, what % of overall LVR would the investors here feel comfortable with? Is 90% overall leaving little margin for errors? I won't be going for 90% overall, in fact I'm on my way to lowering the debt to about 70-75%.
Yes, the accumulation phase will be slower, but perhaps the point is that you actually REACH the end.
What are your thoughts?