Hold or sell now?
Question from Raja updated on 3rd December 2013:
Dear Ron, would you hold your properties for another two to three years and pay off your own mortgage completely to be become freehold? Or is it better to sell now when the market is in a peak and minimize your existing mortgage? Thanks, Raja
Our expert Ron Hoy Fong responded:
Hi Raja, property Investing is all about investing for the long term and I have a policy of 'buy and hold'. To correctly answer your question I would need to know your age, disposable income, goals, retirement plans, the number of properties you have and your LVR. I would suggest leveraging the equity of your existing portfolio and buying additional properties in some "high capital growth" areas to take advantage of the current property boom. Then at the peak of the boom refinance and shift any increased equity across to downsize or repaying the balance of the mortgage on your home.
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