From: Duncan M
Following on from Michael Yardney's post in the thread on "Non Recourse Finance", specifically the part about being overextended..
I'm wondering what sort of metrics one would apply to suggest that someone is too heavily geared? LVR is a start, but for me it seems to simplistic a measure..
Age, interest rates, RatRace salary, Rental Income, vacancy rates, etc would also have input..
Perhaps the banks know best? If you cant get the finance maybe you're overextended at least from a conservative point of view?
Duncan
Following on from Michael Yardney's post in the thread on "Non Recourse Finance", specifically the part about being overextended..
I'm wondering what sort of metrics one would apply to suggest that someone is too heavily geared? LVR is a start, but for me it seems to simplistic a measure..
Age, interest rates, RatRace salary, Rental Income, vacancy rates, etc would also have input..
Perhaps the banks know best? If you cant get the finance maybe you're overextended at least from a conservative point of view?
Duncan
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