I know that many with larger portfolios are making moves to sure up their position and weather the financial storm ahead. I am just sharing a step in my own personal plan.
I am concerned about liquidity and I am concerned about giving banks too much control over my portfolio as we do in the end have opposing goals. In the end I think my success or otherwise over the next 5 years will come down to cash flow (or lack of!)
As I sit here and watch the Vice Presidential debate an e-mail has come through from my solicitor to say that the titles sent to her after my last settlement have been fully cleared and are now sitting in the vault. I won't pretend that I know where the economy and interest rates will be even a year from now let alone 3 years form now but clear titles are sure comforting.
For those that are not already bored with my story I have recently strata'ed an apartment block in Hobart and refinanced out of my development loan. Out of the 13 apartments I have handed over 5 as part of he refinance leaving 8 unencumbered. I don't know how easy it will be to borrow against these titles in the future should I need to but at worst I can sell one or more to gain cashflow. I am finding that enormously comforting as I calculate how long my buffer will last if rents do not rise and interest rates fall as much as I anticipate.
I am concerned about liquidity and I am concerned about giving banks too much control over my portfolio as we do in the end have opposing goals. In the end I think my success or otherwise over the next 5 years will come down to cash flow (or lack of!)
As I sit here and watch the Vice Presidential debate an e-mail has come through from my solicitor to say that the titles sent to her after my last settlement have been fully cleared and are now sitting in the vault. I won't pretend that I know where the economy and interest rates will be even a year from now let alone 3 years form now but clear titles are sure comforting.
For those that are not already bored with my story I have recently strata'ed an apartment block in Hobart and refinanced out of my development loan. Out of the 13 apartments I have handed over 5 as part of he refinance leaving 8 unencumbered. I don't know how easy it will be to borrow against these titles in the future should I need to but at worst I can sell one or more to gain cashflow. I am finding that enormously comforting as I calculate how long my buffer will last if rents do not rise and interest rates fall as much as I anticipate.