Hi all,
I HAVE JUST COMPLETED READING 0-130 PROPERTIES.
WITH THE IMPENDING BANK INTEREST RATES,SHOULD I USE MY OWN MONEY TO SECURE PROPERTY, OR GET A FIXED INTEREST RATE FROM THE BANK?OR A MIX OT THE TWO?YOURS DAVID.
“Caps lock” ….left hand side of your keyboard, middle row…switch it off
Hi David,
There is no correct answer as individuals have different goals, means and timelines.
If you do use cash you will be either fully or partially immune from interest rate rises depending upon the leveraging you apply.
On the flip side saving for a deposit can slow down the accumulation process given that the money you save is the bit left after the ATO and you have taken what they need first.
Consider setting your cash in an offset account so that it is still available to you and at the same time it has the effect of proportionally reducing you interest bill.
The future movement of interest rates is problematic and even the tea leaves don’t give the same answer. So whether or not they go up and by how much is an unknown entity at the moment.
Factor in a rise (or two) and ensure you do not over extend yourself.
Also be aware that interest charges are a cost of doing business and investment related interest rises are partially offset by increased deductions – the net effect for investors is not as significant as for owner occupiers.
Derek
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0409 882 958
Property investment advice and researched property in quality locations available.i guess most here would be sympathetic here given this is your first post and all (welcome by the way), but this is such a broad question that i dont think you’ll get the feedback that you really want or need. try to give a detailed description to your situation. you will find here that most of us are only too obliging to offer free detailed info.
to answer your question, you will in most cases be using a mix of the two. i think you better re-read that book you just finished as it should tell you more about the kind of things you should be doing.
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