Comments on: Safe as Houses http://www.swimgeek.com/blog/2009/03/31/safe-as-houses/ Ideas are bulletproof.. Wed, 08 Feb 2012 08:07:01 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: joe http://www.swimgeek.com/blog/2009/03/31/safe-as-houses/comment-page-1/#comment-2961 joe Wed, 01 Apr 2009 06:52:37 +0000 http://www.swimgeek.com/blog/?p=1437#comment-2961 Hey J Or you could rent or buy a house cash and try not to make the banks any richer (-: Hey J

Or you could rent or buy a house cash and try not to make the banks any richer (-:

]]> By: Jonathan Carter http://www.swimgeek.com/blog/2009/03/31/safe-as-houses/comment-page-1/#comment-2960 Jonathan Carter Wed, 01 Apr 2009 05:46:15 +0000 http://www.swimgeek.com/blog/?p=1437#comment-2960 I think gearing is fine as long as you do it conservatively. People should only do it if they will remain in positive equity after gearing with their current and new investments combined. Some people do crazy stuff like take out a full loan for a property with costs (like a 105% loan) and use their current property (which is probably in negative equity to begin with) as collateral. I think you're quite safe if you put down a decent deposit (at least 20%) and make sure that the rental income is close to the bond repayments. I guess I should shut up, everyone knows this, right? I think gearing is fine as long as you do it conservatively. People should only do it if they will remain in positive equity after gearing with their current and new investments combined. Some people do crazy stuff like take out a full loan for a property with costs (like a 105% loan) and use their current property (which is probably in negative equity to begin with) as collateral. I think you’re quite safe if you put down a decent deposit (at least 20%) and make sure that the rental income is close to the bond repayments.

I guess I should shut up, everyone knows this, right?

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