All Topics / Creative Investing / wrap deal
hi all
I am about to do my first wrap deal in country Victoria (YEAH!!) and I was thought to be reasonable, if i put in the contract that “should the interest rate go beyond 10%, my interest margin will drop from 2% to 1%) so as to ease the repayment for my future owner.
Does anybody thinks that it is a good idea? the reason I propose that is I don’t want to cash burn my wrappee, as I worked with them on their cashflow prior to entering the deal..
Want to join financial independence before 31 years old, currently 25
I think it would be nicer if your margin was 1.5% or less as it is unlikely that interest rates will go beyond 10% before they pay you out (assuming less than 5 years).
Robert Bou-Hamdan
Mortgage Adviser
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