Hi guys
just would like to start a conversation and discussion re whether investors have stretched themselves too far and into a risky zone.
most of us would like to have as many IPs as possible for capital growth. however, some investors, at times, can be a bit over confident and optimistic. I guess my question is:
what factors will ring the alarm bell to a sensible investor " slow down, do not stretch yourself too far"
just an example:
say an investor has over $1.5 m loan, IR is mostly fixed at 4.9, overall LVR 0.7, overall yield 6, overall out of pocket $30/wk (take into consideration of rates, strata, insurances, agent fees)
(plus PPOR mortgage repayment, living expenses. above average income)
is the above investor stretching himself?herself?
just would like to start a conversation and discussion re whether investors have stretched themselves too far and into a risky zone.
most of us would like to have as many IPs as possible for capital growth. however, some investors, at times, can be a bit over confident and optimistic. I guess my question is:
what factors will ring the alarm bell to a sensible investor " slow down, do not stretch yourself too far"
just an example:
say an investor has over $1.5 m loan, IR is mostly fixed at 4.9, overall LVR 0.7, overall yield 6, overall out of pocket $30/wk (take into consideration of rates, strata, insurances, agent fees)
(plus PPOR mortgage repayment, living expenses. above average income)
is the above investor stretching himself?herself?