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
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.