#37 Cracking The Condo Code 6: Leveraging Interest Rates in Illiquid Assets like Real Estate
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Interest rates and real estate go hand in hand. Let’s say interest rates finally take a dip, what should we do then to leverage it? Join Melvin Lim from PropertyLimBrothers on episode 6 of Cracking The Code on Nuggets On The Go, where he shares 6-8 reasons why not paying down your mortgage may actually be more beneficial than you think.
Bite into our nuggets of unconventional financial wisdom as we weigh out the pros and cons of not paying down your mortgage even when interest rates stay put. Tune in and rethink your financial strategy!
( 00:00:00) Intro
(00:01:36) High Interest Environment Leverage of Pay Down?
(00:03:40) 1 // Leveraging Good Debt 4x your wealth
(00:08:05) 2 // Inflation Erodes Debt
(00:12:22) 3 // Net worth remains the same
(00:13:18) 4 // Liquidity is more important than paying down trapped equity
(00:13:48) 5 // Leverage with insurance
(00:15:49) 6 // Interest Rates might come down eventually
(00:16:48) Resale sellers & developers will not sell when interest rates drop
(00:17:19) 7 // You pay interest till the day you sell, not for the full period
(00:18:04) 8 // Use Interest Offset accounts facilities to offset your mortgage interest
(00:18:35) Wrap Up
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