Are you scared of buying more IPs? Instead of having two steady incomes and pre-aproval of 90% of loan.
We pay mortgage for our PPOR and 3 IPs. We still want to buy one more IP. Total taxable income is $150K and mortgage for PPOR is $22000 and topping up $23000 to pay interest/rates etc for 3 IPs (Rent income after PM fees$52400 and interest+rates etc $75600). I did some maths for expenses, We still can afford to buy more IPs, but if one of us loose job and income drops to half or lower, how can we pay mortgage? There was a property next to my IP, but because of this dilemma we could not put offer even though we had pre-aproval of 90% loan. I am thinking ......Why didn’t we put offer? What stopped us buying another IP?
The answer was the FEAR............
The fear of losing income? The fear of not be able to pay mortgage? The fear of raising interest rates? The fear of uncertainties? or..........
I do not know, but we missed an opportunity. Has anybody gone through the same dilemma like this? Is there anybody among us who has stopped buying more IPs because of these FEARs? How can you overcome these fears?
Thanks.............
We pay mortgage for our PPOR and 3 IPs. We still want to buy one more IP. Total taxable income is $150K and mortgage for PPOR is $22000 and topping up $23000 to pay interest/rates etc for 3 IPs (Rent income after PM fees$52400 and interest+rates etc $75600). I did some maths for expenses, We still can afford to buy more IPs, but if one of us loose job and income drops to half or lower, how can we pay mortgage? There was a property next to my IP, but because of this dilemma we could not put offer even though we had pre-aproval of 90% loan. I am thinking ......Why didn’t we put offer? What stopped us buying another IP?
The answer was the FEAR............
The fear of losing income? The fear of not be able to pay mortgage? The fear of raising interest rates? The fear of uncertainties? or..........
I do not know, but we missed an opportunity. Has anybody gone through the same dilemma like this? Is there anybody among us who has stopped buying more IPs because of these FEARs? How can you overcome these fears?
Thanks.............