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dreamerman
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@dreamerman
Join Date: 2010
Post Count: 7
February 16, 2010 - 12:15 am
JacM, I share your views but there’s only so much I can do re convincing my wife. I have more than $100k sitting in the bank earning enough interest just to keep up with inflation. $500k equity in my home. No other debts except credit cards which I promptly pay off each month. My affairs are very simple.
dreamerman
Member
@dreamerman
Join Date: 2010
Post Count: 7
February 15, 2010 - 10:35 pm
Tried to talk to my ultra-conservative wife about investing & it didn’t go well. She feels insecure about having cash in places other than in bank deposits earning interest. Will try again in a few days. Wish me luck.
dreamerman
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@dreamerman
Join Date: 2010
Post Count: 7
February 15, 2010 - 10:33 pm
JacM, thanks for voicing out.
dreamerman
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@dreamerman
Join Date: 2010
Post Count: 7
February 15, 2010 - 5:45 am
JacM, thanks. Your example really helps. I actually know a friend who did the very same thing. He now owns (fully paid up) 3 houses in the ‘burbs. Planning to head to Boarders & pick up a good book. I don’t have much faith in shares so properties will have to do for me.
dreamerman
Member
@dreamerman
Join Date: 2010
Post Count: 7
February 15, 2010 - 4:51 am
JacM, thanks. So that I am clear, Interest Only loan is where only interest is being serviced & no repayments towards the principal amount. Offset account is where excess cash can be credited into the loan account to reduce interest costs but not towards permanent reduction of principal. These excess cash can be taken out again for other purposes like rolling into another investment property.
dreamerman
Member
@dreamerman
Join Date: 2010
Post Count: 7
February 15, 2010 - 4:36 am
Yes, I understand that. Borrow to invest in property is ok with me. Thanks for the link, reading it now. Cheers