Hi guys,
I bought my first IP keeping in mind the 11 sec rule eg IP cost $72500.00 rent $165pw. The problem is, I took the loan over 15yrs (Wasn’t my idea but someone who doesn’t read any investing books) instead of 25 yrs in order to own it quicker. Now I am paying $636 from my own money. This I can afford but was just wondering if this could cause a big problem further on down the track. No point in talking about any CoCR here. Would luv to hear any adviceIn this situation I would have recommended a 30 year term but set the repayments at the amount to pay it out in 15 years.
If at any time if you felt the strain they could be dropped back to the 30 year amount. You would also build up savings in the loan which could be used for future purchases.
Just a small tip for next time [biggrin]
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Oh welll…Live and learn, on the Positive side, you should be increasing your Equity quickly..
Onwards and upwards
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Thanx Simon. This is a lesson I will learn from. I’m hoping to buy another IP in Easter when I go to NZ, so I won’t be making that mistake again. By the way I’m still wanting to buy in Brisbane after Easter some time, so I’ll contact you as soon as I get NZ out of the way. Thanks
Mizui5,
Just think of it as forced saving…You can still access your money through a LOC when you are ready!!!
James
James
I will look on the bright side and yes it will be a forced saving indeed.
We live and we learn. Thanks all
Andrea
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