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Overextending Reply: 3.1.3.1.1.1.1.2 From: Paul Zagoridis While I don't think 18% is around the corner look at it this way... 12% to 18% represents a 50% rise in rates. Many people maxed out when rates were 6-7%. So if rates hit 10-11% it's the same scenario all over again. Dreamspinner

Overextending. 18% was the good news for me Reply: 3.1.2.1.1.1.1 From: Paul Zagoridis "Property prices have peaked" was the point my boss was making when I worked as an Trainee Economist in 1988. I quit to become a property investor/manager. I made $1Million in capital growth between 1988 &...

Overextending. 18% was the good news for me Reply: 3.1.2.1.1 From: Paul Zagoridis Ha! 18% was what I ended up paying on some of my borrowings in 1991/92. My bridging finance hit 33%. Back then they'd say 25% with a discount to 18% if loan stayed within guidelines and payments were on time...

Reply: 1.1.1.1.1 From: Paul Zagoridis I agree about the income protection being important, that's why I wrote "similarly". The problem is that you can only get income protection to 75% of your income and you have to pay tax on the payments. Also it is quite expensive for the cover you get...

Reply: 1.1.1 From: Paul Zagoridis A good point about insurance here. But what if your investment is cashflow positive (before tax)? Similarly how much life life insurance is good if you have dependents? If negatively geared I'd say you need enough to pay down the mortgage to +ve levels or...

Reply: 1 From: Paul Zagoridis I posted a reply but it's been lost somewhere. Here I go again... Overextending is normally called overextended because it's really hard to see until it's too late. I have a simple rule... If I don't go to work, how long before my creditors come after me. That...