Hi,
I am applying for an IO loan to purchase IP, should I fix it for 3 or 5 years or go with the variable rate?
Your thoughts are appreciated.
Thanks
It depends on what is going on in the rest of your portfolio. What are your plans for this property. NB There are fixed products out there that allow you to repay extra and redraw as you need it.
D&L Property Projects Ltd
Sourcing Quality Investments in New Zealand.Email to receive current deals & New Zealand Information Sheet.
[email protected]Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
Fixed rates can be costly to exit. This may cause problems if you sell the property, or if you want to change banks etc.
Terryw
Discover Home Loans
Parramatta
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Not disagreeing with Terry at all.
The flip side of the cost equation asoutlined by Terry is the security of knowing what your repayments will be for the duration of the fix period.
If you do fix five years and above, in my personal opinion, is too long in most cases.
Derek
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http://www.pis.theinvestorsclub.com.au
0409 882 958The flip side of the cost equation asoutlined by Terry is the security of knowing what your repayments will be for the duration of the fix period.Agree – and this can become critical as portfolios grow. Find someone that you like and trust to explain the various products and their pros and cons.
D&L Property Projects Ltd
Sourcing Quality Investments in New Zealand.Email to receive current deals & New Zealand Information Sheet.
[email protected]Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
PLUS IO payments are less than P&I..
In my situation i’m not concerned with reducing the loan (that happens when we try and *tweak* the loan to quote DD)
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorWhat do you mean by “tweak ” the loan?
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