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Well done and thanks GoAnna for the time that you put in the explanation. Your example helped me to understand a lot about what Chilliaa was getting at. This is a great forum. I continue to learn so much about the "mystery" of property investment.

Chilliaa, please explain how fixed rates can be used as insurance to preserve your property holdings.

Got no idea what you are talking about. Please explain. What does MBLs stand for?

Les, all the education in the world is not going to help. Most of us can't beat the banks when it comes to fixed rates because they have got many people working full time to make sure that they win in most cases. When the rates were 9% people were locking in at 8.5% because they thought that...

My friend has done his figures and thinks that it will work out. He said that the figures look better if he can capitalise the 25K, claim some or most of the 25K as an allowable deduction for tax purposes and end up with a much lower interest rate. He is pretty sure that his property will...

Your post reinforces my view that fixing a loan is fraught with danger. The great majority lose out while the banks think it is great. A friend of mine fixed for 5 years at about 9%; it's going to cost him over $25,000 in break fees but even then he thinks that it may be worth it as rates will...

What "fantastic" rate did you fix at?

Another couple of disadvantages of fixing for 5 years are: Offset accounts are not permitted by some banks No extra repayments allowed

Are there penalties involved if a property is sold within the 5 year fixed period?.