From: J Parker
Ah, the dilemmas facing us all without that crystal ball! Just deciding what to do with our last IP- currently paying 5.6% variable on an IO loan but am dithering over fixing the loan to a 5 yr fixed. Trouble is it will up it to 7.6%- Ouch!! That's a diffence of about $5K a year. The rental return at the moment isn't great either.
What are other investors out there doing? I know I could fix part of it and hope that covers me enough if interest rates take a serious hike over the next 5 yrs but... then again, who's to say they will surpass 7.6%?
Opinions please!
Cheers, Jacque
Ah, the dilemmas facing us all without that crystal ball! Just deciding what to do with our last IP- currently paying 5.6% variable on an IO loan but am dithering over fixing the loan to a 5 yr fixed. Trouble is it will up it to 7.6%- Ouch!! That's a diffence of about $5K a year. The rental return at the moment isn't great either.
What are other investors out there doing? I know I could fix part of it and hope that covers me enough if interest rates take a serious hike over the next 5 yrs but... then again, who's to say they will surpass 7.6%?
Opinions please!
Cheers, Jacque
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