Is being complacent costing you money?
November 6th, 2014 • No comments
It seems like this time of year we get even busier, with no time for planning ahead. Many people fall into the trap of the day to day hoping the future will just work out. I however believe in the Benjamin Franklin quote “failing to plan is planning to fail”, not just to enjoy the life you want, but also as a responsibility to our family and loved ones future as well.
So my topic for this week is… Is being complacent costing you money and lost opportunities?
Here are some points for you to consider.
1) Your investment and PPR Property loans
When was the last time you reviewed your loans?
You probably spend a huge amount of time researching whether to get the latest iphone or gadget but how much time do you spend reviewing the largest expenses we have being interest and tax?
With the current low interest rates it is easy to get complacent. Many of us have reduced our loans from the 8% rates from five years ago and now they have come down to around mid-5s, we think we have a great deal.
But you can actually do yourself a disservice if you aren’t looking around and reviewing the interest rates. The banks won’t be ringing you. By being more proactive and even getting yourself a mortgage broker can help you save even more.
2) Do you know how much you can borrow?
Understanding your borrowing capacity and how it can move up and down depending on the marketplace, your working status, equity in your existing properties, even the lending criteria applied by your lenders. Constantly updating your buying capacity by keeping in touch with your broker will ensure you have a clear understanding of when you can purchase again and how much you can spend. This is key to capitalising on the best deals on offer at the right time.
3) How much equity do you have?
Eighty per cent of property investors only own one investment property. Many investors simply don’t invest to their full potential. They become complacent either thinking they have done enough by investing in one or two properties, or don’t have their finances structured correctly to allow them to move forward.
Have you tapped into your equity to leverage into an investment property? Are you literally sitting on your next step to wealth?
4) Have you reviewed your monthly bills and insurances?
We all know the cost of living is getting higher and higher but these days there is much more competition with insurances, gas, internet and household services which we can use to our advantage.
Shop around, get quotes – you can’t save what you don’t know and you can be literally saving thousands a year by changing your suppliers.
Complacency is an easy trap to fall into. The most successful people make things happen, they don’t watch things happen. It takes effort, sacrifice and forward planning not to get complacent but you need to start today.
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