But only about 2.8% when mortgage interest payments are removed from the inflation calculation.Inflation is running at almost 5% ...
But only about 2.8% when mortgage interest payments are removed from the inflation calculation.Inflation is running at almost 5% ...
Intrest only will drastically reduce your repayment. 300k mortgage would be about 500 less a month. Also reduces your tax liability.
Bear in mind too that if you rent the properties yourself without an agent you will be saving that fee too every month.
All might not be lost.
Intrest only will drastically reduce your repayment. 300k mortgage would be about 500 less a month. Also reduces your tax liability.
Bear in mind too that if you rent the properties yourself without an agent you will be saving that fee too every month.
All might not be lost.
You need to crank up the oul calculator there Madeline. 5% of 300K is 15K. You must have made your calculations in November 2005, and then rounded down to the nearest 500.
This is totally unfair and not true as far as I can see. I don't think that anybody here or habitually elsewhere claims that this is a panacea as you suggest. It was mentioned earlier as one thing to check out. And references to it elsewhere are usually general and qualified with the usual caveats about getting professional advice etc.The constant advice from a few posters on AAM that interest only will fix everything is really really bad to the extreme.
Second time today that Howitzer in this thread has had a go at somebody without actually reading in detail what they actually posted. Only this time he didn't get back in quick enough to delete his misplaced comments as he did when he mistakenly criticised something that he thought that I had posted because he didn't read my post properly.500 "less" a month. Not 500 a month.
the houses are finished and were trying to rent them but the leting agent says well only get 1000 a month witch will come no where our mortage payment.
we talked to a friend and she says this long term option would be the best way to go and we would be foolish to bail out on our investment so soon.
thank you kendr, thats very well taught out advice.
interest only looks like its the best option to help me reduce payments, we called the bank and they have agreed in principle we can go interest only for 5 years. if we can get 1100 a month rent then we can just about break even and hold out for when the market improves.
we talked to a friend and she says this long term option would be the best way to go and we would be foolish to bail out on our investment so soon.
The market may not improve for 10 years. Can you afford to take that risk?interest only looks like its the best option to help me reduce payments, we called the bank and they have agreed in principle we can go interest only for 5 years. if we can get 1100 a month rent then we can just about break even and hold out for when the market improves.
The exit costs are high but don’t take any friends advice. Go and see an independent professional advisor. Only with all your private financial details can a proper assessment be made.we talked to a friend and she says this long term option would be the best way to go and we would be foolish to bail out on our investment so soon.