is gearing of 36.9% too low?

Hi Simmo,

I would also have to agree with the above comments, in that a LVR of 36.9% is far too low, especially in the accumulation phase of your investing activities.

I’m 26 and recently purchased my 4th property. My LVR is quite high at around 85%, however, that does’t concern me as I know I have the assets to back the loans up if something goes sour. If you’re picking your suburbs well and buying at the right price your LVR will naturally improve due to capital appreciation.

As I’m young and in the accumulation phase I intend on buying as many properties as the banks will allow me to before turning 30. I think it might be prudent to set yourself smaller goals/targets so that your ambition of retiring comfortably with a large, profitable, property portfolio can be achieved. Similar to what YI has done, ie wanting to achieve $1m networth of property assets by the age of 28.

Also, retiring at 60 is an incredibly conservative goal. That means you would still have endured the 40 year debt in working for someone else.

Kris