We have had a closer look at both of our IP's accounts again, and to our surprise both properties are doing well and are both cashflow +ve. One by $5900 pa, and the other by $1400. Time has increased both the
rents by about $50 each over about a 5 year period and this has really helped our cashflow. Add to that the new rate on one of them and our cashflow is really healthy now.
As we are building a new home with increased mortgage, we are now going to stay IO on both properties and going P&I on our PPOR, we will use the extra cashflow from our IP's and pay done our home loan quicker,we will stick a portion of the loan on a revolving credit so that we can put lump sums on it once a year.
The good thing is now that the IP's are paying for themselves, we can just sit on them and wait for them to increase in value, while working hard on our home loan which we cannot depreciate the interest.
Time in the market really helps your cashflow, and getting through a slump has a positive effect on you portfolio.
FH
rents by about $50 each over about a 5 year period and this has really helped our cashflow. Add to that the new rate on one of them and our cashflow is really healthy now.
As we are building a new home with increased mortgage, we are now going to stay IO on both properties and going P&I on our PPOR, we will use the extra cashflow from our IP's and pay done our home loan quicker,we will stick a portion of the loan on a revolving credit so that we can put lump sums on it once a year.
The good thing is now that the IP's are paying for themselves, we can just sit on them and wait for them to increase in value, while working hard on our home loan which we cannot depreciate the interest.
Time in the market really helps your cashflow, and getting through a slump has a positive effect on you portfolio.
FH
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