Dear Diary…
(This is for my own referencing in future years. Feel free to ignore, or comment, its up to you. Also it is copied from an identical post in another forum as I am almost certain in 5 yrs I will forget where I wrote it)
“Its March 2015, you just fixed 2 loans at 4.49% for 5 years. In the future you will come to regret or celebrate this decision. In fairness, it seemed like a good idea at the time, and you had no intention of selling either property. St George had only recently dropped their 5 year rate and you didn’t see it getting much better. You figured rates would do the dead cat bounce down or flat for 2015 and then sometime in 2016 start a gradual rise for the following 3-5 yrs. You were not an economist, but you made a decision and now you have to live with it.
Was it worth it? Please let me know in 2020.
Hindsight is great huh?
Now to get working on that time machine to find out…”
PS if you got it wrong, suck it up princess.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
you may just sneak into the money if we have a really bad 2 years in 2015/16 however look at it this way……how much is it worth to you to know your rate can NEVER go up for the next 5 years while you pay down your loan/earn equity
That’s got to be worth something. :)
There is such a thing as your happy number. A number which means your portfolio is neutrally geared or close enough, or it is a bit positively geared or whatever. Or the cashflow position allows you to sleep at night without the fear of the interest rate doubling on you.
Sometimes it is a good thing to say “you know what, I’m happy with that. Yes the rate could get better after I make this decision, but if it got worse it would cripple me”.
There is a rate that allows you to sleep at night and/or enables you to continue with your investing plans rather than lock you out of your plans.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Thanks both, yes that is exactly what has happened, both properties are now owing less on the monthly mortgage payment than rental value each month, and I can totally forget about the mortgage and think about other ventures.
Its a stress reduction exercise.
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This reply was modified 9 years, 8 months ago by
BuyersAgent.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
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This reply was modified 9 years, 8 months ago by
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