Tuesday, May 13, 2008

Interest Rates

With interest rate increases of late, I have come to realise that I need to do something about my high interest bills every month.

After some thought I have come to understand that on my investments the interest rate rises, whilst annoying and a hassle, are hardly deal breakers. I can quite simply factor them in and manage them.

But the real problem has come about because I have realised that our own home is to highly geared and can be a major threat to our future well being. I have the funds to see out the next 12 months easily enough, but I'm a proactive type of person and like to tackle issues head on, rather than let them fester and become bigger by ignoring them.

So the question becomes have I made a mistake in taking on such a big mortgage in our own home. The answer is both Yes and No


I have gotten a house and a mortgage that if I had no investments there is no way we would have gotten the finance in the 1st place.

The current repayments are beyond the ability of my wife and I to pay for


If I sold all my investments we could afford it.

I really like the area, and would be a great place to live for a long time and raise a family.

So the question remains what am I going to do about it?? that is what I'm considering at the moment. I can see multiple options ahead

1) sell the house
2) sell one or more of my investment property's
3) sell some shares
4) refinance
5) work alot more to afford it

I keep going around in my head that the investments with the greatest potential for growth in the med-term is my share market investments. And also I really hate the idea of ever selling property. However I think it be become important and I would rather do it on my terms than being forced on me.

I think the desicion has been made in my head that I will sell the apartments, reduce my debts the when how will be made abit later. I have time.

I think personally I have reached the point over the last 2 or so years that I have expanded rapidly and I need to pause and consolidate, before expanding once again. Get myslef on a secure footing again.


I haven't written anything for awhile, because I have been working alot lately and not had the time and energy to write anything down.

I'm currently on holidays in Sydney (visiting family) I decided to pay for the Holiday by working a 2nd and 3 rd job over a short period to pay for it, rather than going into debt for it. This has got me to thinking about my strategy's....

It's strange I enjoy working, I enjoy starting a specific job, working at it and completing it. I get a sense of accomplishment. But I hate that fact I have to do crappy menial work. But then I guess most people hate there jobs. I'm particularly lucky in that my main job is one that I quite enjoy and is challenging and rewarding, whilst giving me great flexibilty in work hours.

At the moment I can earn more money by me working that I can by investing, this is short sited of me, but unavoidable. I intend to change this over time, however Rome wasn't built in a day. I strongly believe that without a strong foundation of a good work ethic, creating wealth would be even more fraught with troubles.

I have my 10 year plan in place, and that is what I'm working towards however slowly it seems at times.... I just have to maintain focus.