I know it’s obvious, but I just realised the other day how true this statement really is.
People come into your life and have an impact on you, and then they leave. They open your eyes to other viewpoints and they help you to see things differently whether they mean to or not. The interesting part is that every change that occurs in life has an effect, however small it may be. Looking into this further, you can see that your environment is constantly changing, even when it appears not to be.
For example, I take the same route to work each day and the same way home each night. I know that’s pretty boring right? But it means I’ve worked out which lane to be in to avoid congestion at an intersection when cars turning at the lights block the traffic. I’ve learned where the potholes are and which roads are the bottlenecks. I’ve learned to be patient at certain parts of the journey and I know basically how long the trip will take, from beginning to end.
But sometimes, even on this apparently unchanging journey, things do change. Sometimes the lights at an intersection are out, causing havoc and chaos. Sometimes there is a car broken down in a lane that can block everything. Sometimes road works create new hazards. So, each day there are new things to learn over and above what I already know, just by driving to work. There are new things to experience, new sources of frustration maybe, but there can also be new wins too. Wins like when you catch all the green lights and get through that busy intersection without having to stop. Oh yes, at that moment, life is good!
Everything changes; sometimes we just don’t see it. The trees alongside the road grow, they drop their leaves, and they get taller. Sometimes, they go brown and lose all their leaves. It’s the same tree but it’s also different. So can we say it’s really the same?
Your Mortgage is like that too. It’s the same, but it’s changing all the time. Your variable rate loan changes every time the Reserve Bank decides to move the cash rate. Your Fixed rate loan changes in relation to its environment. That is, the degree to which the Fixed Rate was attractive to you alters as the other rates and products around it change.
That super competitive interest rate you fought so hard for last year can suddenly become out of touch with the market. What was cutting edge last year may not be this year. That is hard to take for people who are only rate conscious.
Each property you own goes up in value over time, whether you want it to or not. Because of that, the amount of equity you have in the property changes, so your position in relation to the financial environment changes. You may not have taken notice but the equity is there nonetheless.
I know from experience how challenging it can be to find a loan that suits your situation. Once you have found one though it’s easy to fall into the trap of leaving it and just getting on with the job of making repayments. Sometimes we can ignore the obvious because keeping things the same feels comfortable. Besides, by keeping things the same we don’t have to actually do anything.
As an experienced property investor myself, I believe you should review your finances every 12 months because things have changed and because these things may have changed your financial environment.
The simple way to find out is to have a look at what’s available on a regular basis.
To see any changes you first have to look.
I’d be happy to look over your financial position with you. No obligation. No upfront cost.
Simply contact me at firstname.lastname@example.org
Or for a change, call me at 1300 663 836