Does anyone pay off principal in IPs?

[awesome wells]

I would be interested if someome can tell me if I am absolutley daft or not....

In context, daft. You're not maximising your net worth doing it this way.

against paying it to the bank and the bottom line never looking like it's altering.......

As your portfolios grow, your bottom line always alters. Imagine having an $80k IP with $64k debt 20 years ago and never paying off any principal. That house would be worth $500k now and you'd only owe $64k. There are some on this forum that would bost $64k is spare change under the couch.

Doing it this way the properties are going up and our debt is reducing big time...this too me makes me feel better???

I don't agree with others who think "making you feel better" is important. It's an excuse for complacency. You most likely took big steps and took on big learning curves to learn property investing but now you've stopped pushing into those uncomfortable zones. Food for thought.

 

[Perp]

I trust MPHT can distinguish between useful advice and bait.

 

[awesome wells]

I trust MPHT can distinguish between useful advice and bait.

That is useful advice. Nothing more, nothing less.

He doesn't have any other reason for doing it that way other than "it makes me feel comfortable". There is no compelling underlying reason. If you guys don't have the balls to tell him he's complacent, or think it's too upfront and rude, then I will.

We are all complacent at times and it's hard to see. When I'm complacent I prefer to be told because it's easy to ignore it. And often those close don't want to offend. He can read what I've said and choose to take it on board or not. It's not a troll, or an insult, just an honest appraisal of what I see.

You've shown him explicitly why doing it another way is better, and how it is done. I've told him a similar thing but from a different angle. I don't see the problem.

 

[Y33]

MPHT,

Not daft but it also depends on your goals and are you getting there?

If you have a goal of X amount of properties or X amount of passive income per month and you are nearly there then not daft. There are many different ways to try and maximize ones financial position and for me I also like the idea of not having sleepless nights. The properties I have now already return me the PI I like and like you I put some into paying off principle but if a bargain comes along or a property that I must have then maybe I will pick it up.