Reply: 5.2.1.1.1.1
From: Nigel W
Of course, if your properties are cash flow positive from day one, you'll be in much better shape to wear an increase in your interest expense! The corollary being...if you're neg geared now, then when int rates click over to 9%+ you'll be in a world of hurt I suspect...
Maybe a safer strategy is to have a mix of fixed and variable int rate combined with an overall positive cashflow position (before tax considerations)...but then my crystal ball was wrong about the oscars... ;^)
From: Nigel W
Of course, if your properties are cash flow positive from day one, you'll be in much better shape to wear an increase in your interest expense! The corollary being...if you're neg geared now, then when int rates click over to 9%+ you'll be in a world of hurt I suspect...
Maybe a safer strategy is to have a mix of fixed and variable int rate combined with an overall positive cashflow position (before tax considerations)...but then my crystal ball was wrong about the oscars... ;^)
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