LVR when starting out....

[schmick]

Hi Guys,

I'm just curious when starting out, what LVR were you at?

My GF and I are still quite young (DINKS), currently have 1 IP in Brisbane and have just purchased a PPOR in North Melbourne (will most likely become IP at some stage).

We are still in the acquisition stages of our wealth creation and whilst we have a high LVR compared to others (80%+) we feel comfortable in that we don't have any other personal debt other than our mortgages. We've spend a number of years eradicating the 'bad' debt (ie. credit cards, car loans, etc) and this year that money will be channeled into increasing our cash buffer rather than 'paying down' these 'bad' debts.

I generally don't have a problem with a highish LVR, however, reading the forum and what LVR other people are at (albeit at a different stage in their wealth creation than ourselves) sometimes I get a little nervous and second guess myself so I'm curious as to where other people started.

 

[The Y-man]

90+

Cheers,

The Y-man

 

[Propertunity]

Started out at 107%. I borrowed the deposit (off family - long since repaid) and the stamp duty etc.

In the accumulation phase I was commonly at 95% LVR minimums.

 

[Thann]

Started out >95%
Currently 82% (Two properties)

 

[quoll]

In the 90+% mark, always had to budget for mortgage insurance, another $2k or so. Just the price of doing business.

My advice is push as hard as you can but always stay within your SANF, you might have to go over the edge until you work out where the SANF is, but hey we all make mistakes. Just sell something and get the stress under control, get the sleeping back nice and your sweet.

Cheers
Graeme

 

[JIT]

My purchases have been at:

97% LVR
97% LVR
97% LVR
95% LVR
90% LVR

The last two were impacted by the GFC .

 

[RumpledElf]

80% and paid all the fees upfront too.
Then 80% again.
Then another 80% - that house is now at 30%.
Then 62% and we didn't get a loan for the subdivision so I guess 0% for the land.
Next year I want two at 60%.

Aiming for a passive income high enough to live on and a paid-off PPoR within the next 2 or 3 years, which will probably result in us with a very, VERY low LVR.

 

[ianvestor]

I started out with a 97% loan, and topped it back up to 97% at every opportunity. My portfolio might still be in the 90% + range if it weren't for the fact that I've had to move into lo-docs. So now it's more like the standard 80%.

If it drops below that, that tells me it's time to refinance and get more cash out.

 

[rugrat]

Bought our PPOR with 97%. Due to increased equity and taking out a LOC we are now sitting at 90%.

We are hoping to take out a 95% for our IP, But will settle for 90% if neccessary.

I feel completely comfortable with a high LVR, Because I know I am purchasing in a growing market and we can comfortably met our repayment obilgations.

 

[dreamgirl]

Started out at 80% LVR.

Have been paying LMI since then (on 90% or 95%).

I always save my excess funds for the next deposit

 

[oracle]

1) 97% LVR
2) 97% LVR
3) 92% LVR

Currently getting a pre-approval for another IP at 92% LVR.

Have enough cash sitting in offset account if things go pear shape for any reason.

Cheers,
Oracle.

 

[sash]

All my recent purchases (last 5 in the last 3 years) have been between 95-97% also.

Out of interest....what is your actual LVR now on these loans? I have found that my are now at 60-75% LVR.

Cheers

My purchases have been at:

97% LVR
97% LVR
97% LVR
95% LVR
90% LVR

The last two were impacted by the GFC .

 

[JIT]

All my recent purchases (last 5 in the last 3 years) have been between 95-97% also.

Out of interest....what is your actual LVR now on these loans? I have found that my are now at 60-75% LVR.

Cheers

Hi sash,

I'm somewhere around 65-75% LVR overall now, depending on how conservative or optimistic the valuations are.

This is purely due to capital appreciation and with no debt reduction.

Though I do plan to reduce debt in the next 12 months time with extra cash in offset accounts.

 

[devo76]

80% give or take

 

[sash]

Pretty good........nice way to put a couple 100k in your pocket.

Hi sash,

I'm somewhere around 65-75% LVR overall now, depending on how conservative or optimistic the valuations are.

This is purely due to capital appreciation and with no debt reduction.

Though I do plan to reduce debt in the next 12 months time with extra cash in offset accounts.

 

[marg4000]

Always 80%. When we started out that was all you could get, and then you had to have an "in" with a bank manager.
Marg

 

[Rags]

1) 105% (10 years ago now LVR =52%)
2) 90% (1 Year ago now LVR =87%)
3) 70%(only cause it's under 50m2) (Current year LVR =70%)

 

[MCS_80]

My partner and I brought our first PPOR together approx 9 months ago at 73% LVR. We did get a great bargain and purchased the house from a family member, so that helped keep the LVR down for our first home purchase.

Its now down to 65-68% LVR.

Cheers

Mick

 

[our obsession]

I think it was under 76%, give or take a bit.

Hit the 80's at one stage......

Now? it is...I'll work it out and get back--->

 

[Perp]

I can't remember the exact figures, but we've always been over 80%, and frequently over 90%. I would think that most property investors would keep LVRs high in the early accumulation stage. In this blog entry, I outline three criteria which I believe should be met in order to consider purchasing at high LVR.