Overextending
Reply: 3.1.3.1.1.1.1
From: See Change
I felt I was hard done by when my bank (Commonwealth dev Bank ) "forced" me to take out a loan at 14% fixed when I bought my business premesis in 89 . Current rate at that stage was about 12 % . When rates hit 18 % I felt a lot happier about that loan , but was still paying 18% on house as that loan missed out on being capped.
I personally know three people who went bankrupt as a result of over extending in property in that period.
While we may not see 18% again , to believe they may not go up significantly ( and plan accordingly ) is courting disaster and is not good risk management.
Happy and safe investing see change
Reply: 3.1.3.1.1.1.1
From: See Change
I felt I was hard done by when my bank (Commonwealth dev Bank ) "forced" me to take out a loan at 14% fixed when I bought my business premesis in 89 . Current rate at that stage was about 12 % . When rates hit 18 % I felt a lot happier about that loan , but was still paying 18% on house as that loan missed out on being capped.
I personally know three people who went bankrupt as a result of over extending in property in that period.
While we may not see 18% again , to believe they may not go up significantly ( and plan accordingly ) is courting disaster and is not good risk management.
Happy and safe investing see change
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