Rent versus Loan Payments

[MickInvestor]

Is there a general rule of thumb as to what percentage of your loan repayment your rent should cover?

 

[softmonkey]

horses for courses. obviously 100% is perfect. in reality about 75% is achievable and means a small holding cost while not being a sleep killer. If it was closer to 50% i would be asking many serious questions.

 

[George]

And it would be good idea to have some cash put away to be able to withstand at least 6 months without a tenant as aditional security.

You can arrange insurance to cover periods without tenant, but I am not sure what is the cost.
If going this way make sure you check fine print, as with any insurance it is much easier to pay than claim.

 

[MickInvestor]

Thanks guys, greatly appreciated

Mick

 

[buzzlightyear]

And it would be good idea to have some cash put away to be able to withstand at least 6 months without a tenant as aditional security.

Why 6 months?