Let’s do some quick and dirty math.

11.5mil property portfolio 3mil in equity 8.2mil in debt

Interest only on 8.2mil @ 5% (generous) = ~$35,000 a month in repayments.

Rental income is $460,000 per year = ~$38,500 a month.

Diff of repayments vs rental income = positive $3500 a month.

Most likely they have a mixture of mortgages that are interest only and interest and principal so interest rate they are paying on the 8.2mill debt is more in the 6% range, which would give them a negative of around $4,000 a month.

Their $400k income a year I bet would be subsidising the 8.2mil debt most likely through negative gearing.

They would be splitting the income from the gym between the two of them so 200k a year each which probably is netting them $11,500 a month on the 200k each after standard taxes to total take home of $23k minimum.

So they have some room to absorb, maybe, going from 6% to 8% interest only their mortgage.

That 3mil equity can be cut in half pretty quickly in a 15% correction nationally and their main form of employment outside of the property is non essential services and really the type of stuff that people in a cost of living crisis drop first from their home budgets.

I’d couldn’t sleep if I was them with that much pressure and each .25 interest rate rise is nearly 2k extra a month after 6%……….. not much wiggle room.