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“How old is TOO old to start investing?!?”
Like…how do Offset, Interest-Only & Principal Interest Only accounts work (in practical terms) to help you retire your debt? What are the fundamentals of Amortisation (we promise it’s not as scary as it sounds) and when are you too old to refinance a loan??
We’re answering how you can use all of this to best position yourself for retirement, plus…
For single parents, Ben provides his #1 piece of advice to for building wealth into your retirement and we dive into diversification and buying the same suburb.
So much to unpack, digest, and replay time and time again. Start streaming now for some evergreen content folks!!
Questions We Answer…
Q1) Vaughan Nicholson on A question regarding retiring debt:
I understand how filling up your offset account for your PPOR saves you a lot of interest and once offset is full you are only paying principal.
The plan is then to increase money in offset account linked to investment property (IO loan) – I get that when that offset account is full then you are paying no interest on the loan.
But what does that actually mean practically for an IO loan? Wouldn’t the bank still require the minimum repayment per month, irrespective of how much is in offset? Once you’ve filled your offsets, do you ever actually pay off the loan? Do you then switch to P&I as you’d be paying no interest?
Thanks
Q2) Stewart Cameron on Oldest age to reset to a 30 year loan
[I’m] interested to know what the oldest age is that you can re finance to a 30-year loan? Assuming there is an age you hit where you can’t physically pay back the remaining debt…
If you’re in your 40’s will they still extend it out that long?
Q3) Linoy John on Buying two properties in the same suburb
Hi Bryce,
This question is for you as you were from Leeming. I have 2 properties in Willetton – 1PPOR & 1IP. Have I made a bad choice in purchasing a second time in the same suburb?
Q4) Stephen Moore on Investing for Single Parents
At 47, renting and an income of 120000. Is it possible to be in the game to create wealth for a retirement? I don’t own a principal place but have savings of 180k.
Cheers, single dad
Some Listener Encouragement
Hi Ben and Bryce.
My name is Arron, I was the one who purchased a Brunswick apartment in 2014, and contacted you with questions, then my story became Property Couch’s very first case study, in Episode 15!I thank you both for the wisdom that you teach. 8 years on, I am still your regular listener, and I am still holding on that Brunswick apartment for cash flow. Although I have added one more townhouse into my portfolio 5 years ago.
Free Stuff Mentioned…
- Listen to our 400th Episode featuring the incredible and inspiring true story of Michael Crossland here!
- BingeGuide to Property, Finance & Money Management – Download here
- FREE eBook – Make Money Simple Again
- FREE Book (Just pay for shipping!)– The Armchair Guide to Property Investing
- Introducing moorr: our newest evolution of the MyWealth Portal! Check it out here. While you’re at it, why not complete the eye-opening Money Quiz in moorr which helps to identify how good you really are at managing your cash. (Listen to 2:38 for the details!)
- Read the article by Eleanor Creagh, Senior Economist at REA Group, on why more than half of all Australian homeowners won’t feel the cash hikes yet here. (Tune in to 49:50 to hear Ben’s related “What’s making property news” segment!)
- Looking for a friendly, knowledgeable investment savvy mortgage broker to help you find the best solution for your circumstances? Click here to find out more about our services and book a free, no-obligation consultation today!
- Listen to Sean Croxton’s “The Quote of the Day” podcast from Bryce’s Mindset Minute today here!
Here’s some of the gold we cover…
- 0:00 – A snapshot of this week’s episode
- 1:58- If you’re new here, listen to this!!!
- 4:12 – How can you make your life matter? (Bryce’s Epiphany!)
- 9:34 – Q1) A question regarding retiring debt
- 10:26 – Amortisation: Let’s Break Down This Scary Word
- 13:30 – So, how often is interest calculated???
- 14:41 – Simple vs. Compounding Interest: How you can pay off your loan quicker!
- 16:30 – A Practical Guide to Offsets, Interest-Only & Principal Interest Only!
- 18:30 – When you would or wouldn’t use your offset to pay off your loan…
- 20:50 – Let’s Summarise!
- 21:54 – How can you place yourself in the best position for retirement?
- 23:59 – The Backstory to Q2 (Paying more interest…could actually be a good thing?!?)
- 26:59 – Q2) Oldest age to reset to a 30-year loan
- 27:23 – THIS is when you should be worried!!
- 28:04 – How lenders typically analyse older refinancing loans…
- 29:47 – Use this 1 thing to manage this minefield folks!
- 31:10 – Our Answer: How old is too old to start investing??
- 32:26 – Q3) Buying two properties in the same suburb
- 33:04 – Let’s assess her Asset Selection
- 34:07 – How can you work in Diversification??
- 35:51 – Has she made a bad choice by buying in the same suburb?
- 36:53 – Refresher Class: The Fundamentals of Asset Selection!
- 38:59 – Q4) Investing for Single Parents
- 40:09 – Ben’s #1 Recommendation
- 43:37 – Why it’s so important to seek professional advice!
- 44:50 – Listener Encouragement: Arron – from our very first Case Study – is back!
And…
- 45:45 – Why do we promote buying established properties? (This is a REAL message we received)
- 49:50 – Anxious about rising interest rates? Tune in here for a deep dive into the 2021 Census Data to allay those fears!
- 56:05 – Folks, remember these are actually amazing times for investors!!
- 57:14 – Mortgage Jail: Why is it happening?
- 59:18 – Our Key Message for investing in today’s environment!
