You're right BV..........I am woefully underleveraged
as it relates to other investors, however at the moment it is the prudent thing for my situation, servicibility, and most importantly SANF.
I have been ambivalent for a while to just buy more for the sake of exposing myself to another cap growth cycle (in a general sense, hence encapsulating a 10 year period) and thwarting my cash flow. At the end of the day, I have ample resi stock to still give me that pleasure.
What I need, is to enhance my CF position, whether that is by sucking out some equity to park into offset and look at CF assets or actually potentiallly harvest one (recently retrieved clear title) which is (by current valuations) manifesting a very very ordinary yield. It has had very juicy growth.
Those funds would then be teflonised in a trust and a CF asset (CIP or multi unit block) purchased with a more flexible income distribution and the other benefits of the familty trust.
When banks start throwing money at folks again, I will create my own bank in that trust by setting up LOC or offsets against that clear title and have more choices.
We are in interesting times folks. I've been sounding like a broken record for the past 12 months about keeping LVR's conservative (within the context of everyone's own personal situation) and, I don't see any evidence to the contrary to make me change my mind.
If I elect the offset route and don't sell just yet, my LVR will still be less than 50 % on personal portfolio. Our super fund has no debt, however I am not averse to doing a warrant lend such as you have BV for the right asset.
I trust I don't sound too bleak. I am a realist and consider we are not out of the woods by a long shot with global volatility and some local prospective events relating to our inept government still to pose obstacles.
Where there is doubt.........stay out. Uncertainty is often best used to reflect and take stock of one's own situation and make strategic moves to buffer/hedge current position and look for opportunities to unfold. There is no rush (for me, at least) to buy more right now.
