What is your gearing ratio

Significant portfolio of commercial, industrial and residential properties.

LVR of 60%

Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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hi all
just for resiwealth I did the calcs currently running at 29.15%
I haven’t nor do I check it usually.
I can run up to 80% but at the end of a development it gets down to these levels as the returns come in.
but ha I don’t worry about this type of figure, I look not loan to value ratio but money out to cash return ratio they are not the same.
I will give you an example and tell me which you would do,
100k in 2 years you get back your 100k plus 100k
or 100k @ 4% per month (48%) each month compounded.
which would you do???
these are the questions I have to answer not’s what my lvr.
at these rates do you worry whats your lvr.
sorry call me simple put lvrs are for bank managers not me, as long as my lvr is below there thresh hold do I care,
sorry I don’t,
not one to quote others but as dazzling says who give a rats ar-e about lvr its whats your lender will lend you.
and if you think its to hot in this kitchen don’t become a chef.
ha maybe its me but lvr is the last thing that people should be looking at,
look at your return on outlay and forget about lvr but thats my .002
and I’m only a little wall flower over here that doesn’t know much.
and at 29.15% lvr I don’t look like dying.
not sure if this the type of answer to resiwealth question and I won’t quote dazzling again in this post

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