WHat happens to those people with lots of IP and the loan interest goes up and they have a Principle and INterest variable loan?
Wont that make some of them not positive anymore?***********************
“they” have a challenge!
Or they go broke
Reduce your exposure now!
cheers
XYZZYhi guys
yes there is always a risk, thats why its real important to buy right not just buy as much as you can. I figure most of mine will be cash positive till interst rates get to 10% (can’t see that happening if it did the country would be stuffed) i don’t expect interest rates to rise very much but who knows, best to have some insurance (fixed rates) if you owe a lot of money. I don’t even mind the idea of take a little profit, but only if you have a few properties.
the real killer is rates up and vacant houses[xx(].
thats why its good to have a bit of cash up your sleaves. sadly some will get burned it always happens, but i expect it will be those poor people who have bought recently and have negative geared properties.
westan
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