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Hi Paul,Having multiple properties is known as "hedging" or spreading risk. As you indicate, the theory is that, if one is void, the income from the others will support it.However, what if two of them are void?!When starting out in business, the first stages are always the most challenging, as you are learning, making mistakes, and honing your landlord acumen. Lack of experience and knowledge heightens that risk further as the mistakes are greater, and the current market conditions are not as forgiving as they were even five years ago.Scaling up quickly while on a learning curve is a high risk strategy and I would certainly advise you against stretching yourself financially in the current uncertain market conditions.Slow and steady is the way to go imho. So don't set a timeframe on acquiring three properties. Get each property up and running with the tenant paying the rent on time before you move onto the next one. Keep your loan to values below 60% to minimise your risk.Build your support team around you while doing this - a reputable mortgage broker, tax advisor, and letting agent - and utilise their knowledge to support your growth, while also learning from Property Tribes and other low cost resources.I hope that helps for starters?P.S. In case you missed it, this would be very useful to you:Monday - Taking responsibility for your financial future and how to do thatTuesday - Get educated!Wednesday - Create your "income engine" and then turbo charge it!Thursday - Build your "wealth pyramid" to future-proof your wealth.Friday - Protect your assets within a "wealth fortress".
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
I believe the theory on the buffer is that if you have a mortgage at 75% LTV and prices had crashed 15% when you came to remortgage, you would need to top up the mortgage t get back to 75%. If you are at 60% LTV, after the same fall, you would be left at 75% LTV and able to remortgage without additional funds needing to be put in.
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60% LTV is so you can benefit from the best mortgage rates.
Each situation is different of course but if you find yourself with extra money in your bank account and you are on a 75% LTV it could make more financially sense to pay down some of the loan to get onto a better rate which would also be better for S24.
Slowly working towards financial freedom