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From: H T
My wife an I have 4 ip's with a debt of around 1.1m and equity of about 200k in these properties.
With them fully tenanted 12 month a yr, it runs about even shhtephen
The reason we're allowed to gear up so much is that we own our home outright and have above average incomes. I know about good and bad debt but this amount sounds a fair bit for a pair of 30 somethings. We have a combined income of about 170k, but this may go to one in the not to distant future.
How much would be enough in case things "go wrong" like dud tenants, dud economy, loss of job etc..
Would enough to survive for say 6 months be sufficient??? 1.1*.065% = 72k int pa say 40k?
Sorry, its an airy-fairy pessimistic post but the way i see people in such a hurry to take on debt...well if things went pear shaped - its fire sale city here I come.
My wife an I have 4 ip's with a debt of around 1.1m and equity of about 200k in these properties.
With them fully tenanted 12 month a yr, it runs about even shhtephen
The reason we're allowed to gear up so much is that we own our home outright and have above average incomes. I know about good and bad debt but this amount sounds a fair bit for a pair of 30 somethings. We have a combined income of about 170k, but this may go to one in the not to distant future.
How much would be enough in case things "go wrong" like dud tenants, dud economy, loss of job etc..
Would enough to survive for say 6 months be sufficient??? 1.1*.065% = 72k int pa say 40k?
Sorry, its an airy-fairy pessimistic post but the way i see people in such a hurry to take on debt...well if things went pear shaped - its fire sale city here I come.
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