“If the rates are up 50%, we'll go interest only for five years. And basically hope in five years when the loan expires, rates will be back”
Rob Buccini · The Macro Dirt Podcast · Real Estate Risk Manager
Play from 10:47
10:47
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What was described
when interest rates rise 50%, switch to interest-only loans for five years
rates up 50%, interest only for five years
Said nearby on the same subject
“Go revalue your property, lock in that equity, get it on an interest only loan ... you can reset the interest only term after five years ... that locks in 10 years, a full decade, of access.”
“I just got an unconditional approval for a loan and signed loan docs on Saturday. It's a $6.5 million loan and it was split into two portions, one at 6.14% interest only investment and one at 6.34%. So we guarantee our rates at 6.1%.”
“I like the idea of locking in equity positions ... I put, pay the loan back in to redraw, so that the balance is like $50, leave it on interest only.”
SW
Stuart Weems personal practice
Investopoly ·
How they work$500,000 facility; $50,000 interest-only balanceShare this moment
“Someone who chooses interest-only on the investment split usually maximises the deductible interest and directs all surplus… towards a non-deductible home loan”