In catching up with our personal ASB banker for lunch today to discuss whether to float or fix some of our mortgages, I actually took the time to consider just how low the retail interest rates are. Twenty-four years ago when I bought my first home in Whakatane for $55,000 with interest rates at 20.5 per cent, we never dreamt that we would ever see rates at a quarter of that! Well how times change, and I would have to say that I came away from our meeting thinking that if we are not seriously thinking about borrowing more money for property investment then we would have to have rocks in our head – quite inspiring actually.
With opportunities still presenting themselves to acquire property at reasonable figures coupled with rental returns beginning to show positive cash flows, I am thinking such scenarios have to definitely go into the “serious consideration basket”.
Stop waiting for the ‘big deal.’ Get into the ‘game’ with small deals (like my first small condo that allowed me to start investing for just a few dollars). Don’t worry about being right or wrong at first, just start. You’ll learn a lot more once you put some money down … just a little to start. Money has a way of increasing intelligence quickly. Fear and hesitation retards you … but you must start.
It really is about having a plan and making a conscious decision to take action. The seed was sown today for such a plan and it all makes so much sense.