LVR - what are you comfortable with right now

[MarkandTina]

My LVR is at about 30% right now, it wont make me as rich as some, but its the level I need to feel comfortable (and serviceability is my main constraint).

I'm interested in the opinion of others though, what LVR lets you sleep at night in these interesting times?

 

[Rixter]

When I purchase an IP I borrow 105% of the purchase price on a 80% LVR finance structure.. Across my total portfolio at the moment my LVR sits at approx 60%.

 

[devo76]

70% give or take and a neg cash-flow of two cases of beer per week and a 20+ year investing window so sleeping well at night regardless of what happens over the next 5-10 years.

 

[Peter_Tersteeg]

I prefer to keep things at 80% of lower (I recon I'm at about 60% overall right now).

My affordability comfort zone is more around the ongoing income required to service. We like to be able to qualify for our lending on a single income given the nature of my wifes and my employment.

It's very conservative but it has served us well during GFCs and IT Downturns. It also gives us a lot of cash to invest when times are good.

 

[Mick C]

In the past 80% or just a bit under.

However going forward; will be leveraging the advantages of LMI- and will be looking at 80-90%

Being self employed; the business itself is a growing "investment" so need to have a lot of cash buffer supporting it ( wages, expansion, growth etc...)

Regards
Michael

 

[Ed Barton]

0

nothing. zero. naught. zip.

 

[MichaelW]

68%, well that's what it will be when I'm finished my little development in my Sig early next year. Today, who knows, depends what the banks value my half built development site at...

About this level is OK. Virtually neutrally geared so cash flow under control whilst still controlling a decent sized portfolio.

Cheers,
Michael

 

[Mick C]

0

nothing. zero. naught. zip.

Like a boss

Regards
Michael

 

[lizzie]

0% on ppor

less than 80% on ip's - if neutral geared

 

[locko24]

As much as they'll give me.
I'm confident in my choice of ip's.

Currently between 80-90, depending on todays valuations.

 

[.toe]

100% if it's cf+

 

[travelbug]

When I purchase an IP I borrow 105% of the purchase price on a 80% LVR finance structure.. Across my total portfolio at the moment my LVR sits at approx 60%.

Yep that's me exactly.

.

 

[Delilah]

Same as Lizzie. Although we don't own our PPOR, we are very close.

 

[buster]

Use equity in other properties to purchase new property and that remains unencumbered unless needed for next investment. Sometimes crossing loans is needed but I prefer to be crossed and have an unencumbered property. Generally dont like going over 60% LVR.

 

[Indifference]

Comfortable? Now? I'm not.... I'm actually quite concerned about the sovereign debt issues but most seem oblivious to the elephant in the room and I get a sense that some feel economically sheltered by virtue of being in Australia. IMO, this is a "risk on" attitude & I'm having none of it.

Currently at ~40% LVR but have the capital to go to 0% if required, so I will sleep well even if the global economy implodes. Actually, I would be better off if it did...

 

[tcocaro]

My comfort level is purely dependant on a combination of;

1. what the bank will lend
2. what is required
3. what I can afford

 

[VYBerlinaV8]

Right now I'm probably sitting at about 60%, but this will go up to almost 80% if my latest offer is accepted.

LVR is just one way to manage risk.

 

[Tillie]

Approximately 20% - 30%

 

[The Y-man]

0

nothing. zero. naught. zip.

At the moment - same. Waiting to see how things turn out.

The Y-man

 

[Deltaberry]

As much as possible as long as it's a good calculated risk.

Re my property portfolio, happy to go 100% as it'll still be quite CF+. Frees up cash to take more important punts.

Don't have a PPOR or a family. So can afford to lose it all.