Mortgage Investments

We do recommend mortgage investments (in Australia) but at present are accumulating cash (allowing mortgages to expire) so that we are in a position to take advantage of equity opportunities as they arise.

Lending risk has also spiked with the shutdown and we have revised our rules:

1. No property development;
2. No construction risk;
3. No composite mortgage funds where we cannot identify the underlying assets and borrowers;
4. No specialized properties (e.g. hotel, motel, holiday accommodation, child care, cold storage, dairy, etc.);
5. No restaurants, gyms or businesses with a high failure rate;
6. Alternative source of income (e.g. small or medium-sized business) to service the loan; and
7. LVR no more than 60%.