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Ben Sage, Moving Woodstock

Time to Buy or Re-Fi!!!

Posted on March 22, 2012 by Ben Sage in Uncategorized

Hello property investor friends, or those debating entering the exciting world of landlordship!

I know you’ve been hearing this for months or perhaps years, but I firmly believe that it is as true today as it will ever be.

MORTGAGE RATES WILL NEVER BE LOWER

Honestly, if you’re thinking of buying your first, or another investment property, now is absolutely the time.  Go and get pre-approved right now.  These rate sales will not last forever.

I am in the process of refinancing my first investment property.  It is on a 5 year variable rate mortgage, that at the time was a good deal at Prime – 0.35%.  So with prime at 3%, I’m paying 2.65%.  Pretty decent right?

Well it’s up for renewal in August of 2013.  I’ve never been super comfortable with the variable rate concept on an investment property.  As an investor, I’d be happy knowing that my costs were FIXED.  Makes budgeting and planning easier, and it allows me to sleep better at night, knowing that when rates rise, my books don’t get “adjusted” severely.

Because the mortgage that I have is an open, variable type mortgage, I can move it whenever I like without penalty.  So that’s what I’m doing.  With a baby on the way, I need all the help I can get sleeping at night!

The plan, with my investment real estate, is never to sell it.  Ever.  I expect to hand it off to my children when I am no longer around, and have them deal with it.  The hope is that it will be long paid-for, and should theoretically deliver so much equity to “the kids” when we are gone, they should be set, or well on their way to being set for their own retirements.

I have poured over the options, and I have decided that it’s time to admit that I’m keeping the property.  I will be moving the mortgage to a 10 year fixed rate, advertised at just 3.99%.  The jump in rate means I will have to extend my amortization by a few years in order to maintain similar monthly payments, but the security of the fixed rate product means that my mortgage payments will stay the same for 10 years.  That’s a long time in the life of a mortgage.  Almost half of it’s life!

This is a fantastic opportunity for landlords to

Ben Sage, Sales Representative. www.facebook.com/SageAdviceRealEstate  www.bensage.com www.oxfordcountyhomes.ca RE/MAX a-b Realty Ltd., Brokerage. www.a-brealty.com


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