I have a conundrum that my head and heart are locked in battle over.
I currently have a large credit card debt from a previous investment - too long a story and theres a thread describing it elsewhere - I also have an equal or greater amount of cash that can clear the debt and leave me skint!!!!
My head says pay of the c/c debt and save like made for the next few years to buy another property or to possibly build my current IP as its DA approved for a Duplex.
My heart or my testosterone things are pleading with me to leave the credit cards for another day and make another purchase in a similar area as its seen some great growth on the last 12 months.
Head or Heart -
My gut feel is that although I'm not a fan of the C/C debt, the growth in the next period could well be enough to clear the C/C amount and allow for more IP's at the same time ?
Current debt levels on the IP is 74% so theres some more cash there to.
I have those old demons shouting in my head slow down, don't rush - walk before you run etc etc etc. You know the procrastinating ones.
I guess I'm looking at the numbers that show the Capital growth makes it a viable option + the fact the property's will be neutrally geared.
The credit cards will still be getting paid off just at a slower rate.
Ohh and the maths says the interest on the cards will be alot less than the equity earned in owning a 2nd and possibly 3rd property in this coming time. i guess that one line just answered my own question ? .
Cheers
Andrew
Sorry its the end of a long friday and I may be rambling
I currently have a large credit card debt from a previous investment - too long a story and theres a thread describing it elsewhere - I also have an equal or greater amount of cash that can clear the debt and leave me skint!!!!
My head says pay of the c/c debt and save like made for the next few years to buy another property or to possibly build my current IP as its DA approved for a Duplex.
My heart or my testosterone things are pleading with me to leave the credit cards for another day and make another purchase in a similar area as its seen some great growth on the last 12 months.
Head or Heart -
My gut feel is that although I'm not a fan of the C/C debt, the growth in the next period could well be enough to clear the C/C amount and allow for more IP's at the same time ?
Current debt levels on the IP is 74% so theres some more cash there to.
I have those old demons shouting in my head slow down, don't rush - walk before you run etc etc etc. You know the procrastinating ones.
I guess I'm looking at the numbers that show the Capital growth makes it a viable option + the fact the property's will be neutrally geared.
The credit cards will still be getting paid off just at a slower rate.
Ohh and the maths says the interest on the cards will be alot less than the equity earned in owning a 2nd and possibly 3rd property in this coming time. i guess that one line just answered my own question ? .
Cheers
Andrew
Sorry its the end of a long friday and I may be rambling