Question: I’m about to put one of my investment properties on the market and will have $100,000 available after the sale. Should I pay off the mortgage on my own house or buy another investment property? I pay a higher interest rate for the investment property than for my own home.
Answer: It sounds suspiciously like an expert mortgage broker experienced in investment property was not used to set up the original mortgages in this instance. And that the property investor doesn’t know the difference between good debt and bad debt.
A good property coach/mentor/advisor would have rearranged the mortgages so there was no personal mortgage and all debt was tax deductible.
This is a very good example of how using a property coach to guide investors can save money and avoid pitfalls.
If you are starting out in property investing, talk with me first about how I can make a long-term difference to the results you achieve, allowing you to reach your goals faster.