Originally Posted by
BlackPeter
Fair enough, though not sure, what the ratio interest bearing debt to equity would give me ...
Lets see -
If I buy a house for $1m and fund $800,000 through the bank (which is not too bad in NZ), than my equity would be $200k and my interest bearing loan $800k, i.e. the ratio would be 400%!
If I buy a house for $1m and fund only $500,000 through the bank (which would be amazing for most home buyers), than my equity would be $500k and my interest bearing loan $500k, i.e. the ratio would be still 100%!
What did you say Rymans ratio is? 83%? Does not sound too bad, doesn't it ...