Hi.
I'm sure there are many older investors out there in a similar situation to ourselves. My wife and I have been steady investors for 28 years and presently have 3 Wellington rentals with 80% equity plus and our brand new freehold home.
For health reasons we wish to retire 3 years early so hopefully we are still entitled to the pension in 3 years! All 3 rentals have P & I mortgages with the same bank and at 65 (3 years) we intend selling the smaller home allowing the remaining 2 larger homes to be freehold plus cash.
We are looking to approach our bank now and request all 3 mortgages or failing that 2 of 3 mortgages move to interest only. This will enable us more cash flow for living over the next three years and the potential of 3 years gain rather than selling one now.
Although we do have some saving to live on for 3 years with the large amount of capital tied up in the houses chances are we personally won't get to spend it even if we make 80+! We would like some of the wealth effect now having lived lean for years to upkeep and attained the houses. We don't wish to be paying down debt and in doing so increasing equity which in the long picture our estate would benefit, not us personally.
Have other forum members approached their bank requesting similar?
In our opinion the risk to our bank is very low with the high equity level, they get to keep mortgage business and the debt stands still and we personally have the better cash-flow for enjoyable living.
Thanks for your comments
I'm sure there are many older investors out there in a similar situation to ourselves. My wife and I have been steady investors for 28 years and presently have 3 Wellington rentals with 80% equity plus and our brand new freehold home.
For health reasons we wish to retire 3 years early so hopefully we are still entitled to the pension in 3 years! All 3 rentals have P & I mortgages with the same bank and at 65 (3 years) we intend selling the smaller home allowing the remaining 2 larger homes to be freehold plus cash.
We are looking to approach our bank now and request all 3 mortgages or failing that 2 of 3 mortgages move to interest only. This will enable us more cash flow for living over the next three years and the potential of 3 years gain rather than selling one now.
Although we do have some saving to live on for 3 years with the large amount of capital tied up in the houses chances are we personally won't get to spend it even if we make 80+! We would like some of the wealth effect now having lived lean for years to upkeep and attained the houses. We don't wish to be paying down debt and in doing so increasing equity which in the long picture our estate would benefit, not us personally.
Have other forum members approached their bank requesting similar?
In our opinion the risk to our bank is very low with the high equity level, they get to keep mortgage business and the debt stands still and we personally have the better cash-flow for enjoyable living.
Thanks for your comments
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