The risk of Inaction
Discussion
I feel that my over caution has lead to a kind of paralysis that has affected, or will affect, our financial future. For example, we've got a fair chunk of equity in our house now, and very low mortgage repayments. I feel like I should be leveraging, yet find myself doing a lot of thinking but taking no action at all. Is there a cure?
WinkleHoff said:
I feel that my over caution has lead to a kind of paralysis that has affected, or will affect, our financial future. For example, we've got a fair chunk of equity in our house now, and very low mortgage repayments. I feel like I should be leveraging, yet find myself doing a lot of thinking but taking no action at all. Is there a cure?
probably not.... but what makes you think leveraging (IE borrow a chunk of cash against the equity in your house) is going to help your financial future??GT03ROB said:
WinkleHoff said:
I feel that my over caution has lead to a kind of paralysis that has affected, or will affect, our financial future. For example, we've got a fair chunk of equity in our house now, and very low mortgage repayments. I feel like I should be leveraging, yet find myself doing a lot of thinking but taking no action at all. Is there a cure?
probably not.... but what makes you think leveraging (IE borrow a chunk of cash against the equity in your house) is going to help your financial future??WinkleHoff said:
GT03ROB said:
WinkleHoff said:
I feel that my over caution has lead to a kind of paralysis that has affected, or will affect, our financial future. For example, we've got a fair chunk of equity in our house now, and very low mortgage repayments. I feel like I should be leveraging, yet find myself doing a lot of thinking but taking no action at all. Is there a cure?
probably not.... but what makes you think leveraging (IE borrow a chunk of cash against the equity in your house) is going to help your financial future??
Pro-rata, biggest property % gains happen at the lower end of the market. Bigger props stick far more easily
If you choose very, very carefully, you can get decent returns even in this difficult market but you are playing with assets that can take time to shift.....so be as comfortable holding them.
If you choose very, very carefully, you can get decent returns even in this difficult market but you are playing with assets that can take time to shift.....so be as comfortable holding them.
WinkleHoff said:
GT03ROB said:
WinkleHoff said:
I feel that my over caution has lead to a kind of paralysis that has affected, or will affect, our financial future. For example, we've got a fair chunk of equity in our house now, and very low mortgage repayments. I feel like I should be leveraging, yet find myself doing a lot of thinking but taking no action at all. Is there a cure?
probably not.... but what makes you think leveraging (IE borrow a chunk of cash against the equity in your house) is going to help your financial future??I also have a view that property is not a wise investment, not one that is popular around these parts. The amateur property "tycoons" believe that all they have to do is buy a property & the road will be paved with gold. Yes it is possible to make decent money out of it, but unless you have a really good handle on the market, if you do make it it will be luck. Do you feel like you know the property market well??
If however you'd like a larger/better home sounds like you are placed to do it. If that results in a better gain treat it as a bonus.
With 2 properties aside from my main home with "leverage" & a similar sum invested via funds in equities, I know which gives the better return & least hassle factor. It's not the bricks & motar!!
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