Except for my first purchase, which at the time was for PPOR (later it became a renter) I think I have put up $200K on every purchase I have made. I know I am special, but I doubt I am 1 in 100,0000 or 1 in a million.
You've put in $200k cash (not borrowed using other equity) on every purchase?
If that's the case, I'd say you're not just special, but very special. Not sure what '1 in X' that makes you but it would be very very rare IMO.
You've put in $200k cash (not borrowed using other equity) on every purchase?
If that's the case, I'd say you're not just special, but very special. Not sure what '1 in X' that makes you but it would be very very rare IMO.
To be 100% clear, on at least one occasion you might have to include some of the cashback from an existing loan to make up the full $200k. But on every occasion (except for the very first purchase) I have put in at least $100k of new cash and on only two occasions (first and second purchase) has new borrowing been more than 50% of the purchase price. My goal has always been to keep overall portfolio LVR between 35% and 50%. Once you get beyond a couple of places, serviceability concerns start to make it a bit risky at higher leverage than that. (Think interest rate spike or loss of job.)
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
My goal has always been to keep overall portfolio LVR between 35% and 50%. Once you get beyond a couple of places, serviceability concerns start to make it a bit risky at higher leverage than that. (Think interest rate spike or loss of job.)
Quote:
To be 100% clear
I'm nowhere near 100% clear on your position.
Quote:
, on at least one occasion you might have to include some of the cashback from an existing loan to make up the full $200k.
What's "cashback from an existing loan"? Are you talking redraw? Another loan on an property already held by you?
Quote:
But on every occasion (except for the very first purchase) I have put in at least $100k of new cash and on only two occasions (first and second purchase) has new borrowing been more than 50% of the purchase price.
It was $200k a couple of posts ago, now it's halved.
I don't doubt some people buy with cash or very low LVRs, but I think they are very rare.
To be 100% clear, on at least one occasion you might have to include some of the cashback from an existing loan to make up the full $200k. But on every occasion (except for the very first purchase) I have put in at least $100k of new cash and on only two occasions (first and second purchase) has new borrowing been more than 50% of the purchase price. My goal has always been to keep overall portfolio LVR between 35% and 50%. Once you get beyond a couple of places, serviceability concerns start to make it a bit risky at higher leverage than that. (Think interest rate spike or loss of job.)
Do you have a permanent relationship, with or without children of your own, or children of a significant relationship you have, or other similar-magnitude personal obligations)?
I'm by no means trying to get you to reveal all--we've had a few arguments over time, so I wouldn't expect you to. But I'm trying to understand in qualitative if not quantitative terms whether you ever experienced significant unscheduled hard-dollar costs, e.g. the cost of raising a child or two, or the cost of underwriting a significant family illness, while accumulating your portfolio.
It was $200k a couple of posts ago, now it's halved.
I don't doubt some people buy with cash or very low LVRs, but I think they are very rare.
Nope. It has always been $200k. But in one case that $200k might include up to $100k in cashback/redraw from an existing loan.
Once you get past the first 3 or so IPs, you *have* to buy at low LVR unless you earn squillions.
Sober
30 Nov 2013, 06:23 PM
Do you have a permanent relationship, with or without children of your own, or children of a significant relationship you have, or other similar-magnitude personal obligations)?
I'm by no means trying to get you to reveal all--we've had a few arguments over time, so I wouldn't expect you to. But I'm trying to understand in qualitative if not quantitative terms whether you ever experienced significant unscheduled hard-dollar costs, e.g. the cost of raising a child or two, or the cost of underwriting a significant family illness, while accumulating your portfolio.
No I have not. But I have always kept a cash buffer in case of such an emergency.
But spending well less than half what I earned has always helped, and not being married has helped with that.
Mind you, it probably has not changed the LVR at which I bought so much as the frequency with which I bought.
I updated the Chart of Shame with the latest ABS house price data...
Good for bull morale given the recent employment data.
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
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