Personal FinanceMay 4
WalmartHelloVara
Hello,
Is it good to pay down principal ( ~50k ) for a property with 3% interest ( this gives more cash flow ) or buying another investment property with high interest rates ( which might not cash flow ) eventual appreciation.
3% interest will beat inflation for most of your lifetime, especially right now. Don’t pay that off early ever imo
Yeah even I’m thinking same.
Why pay off 3% 50k when you can put that into a tbill for the same length and profit?
1. Yes for pay down if you don’t intend to own another property AND you don’t care about the 50k. This lump sum will save you a lot of interest. 2. No, if you plan to own another property. Obviously your debt ratio cna be a problem so to add to what I said in #1; if you need to buy another property and you are currently close to the debt ratio that bank won’t loan anymore, you pay that down. Personally, I do a mix of paying more principal monthly (a few hundreds more is helps), and continue to invest in funds until til I am ready to buy another property. 3% is low enough to avoid paying down this much principal. If however you have pmi you want to get rid of, because you are now eligibls, see how much you need to pay to get out of pmi.
I invested some on stocks, and I own 2 properties. I have invested some on commercial property ( strip mall ). Do you recommend to add more real estate or any other diversification options.
You are way ahead of me. So all I am going to say is no because IMP you are better off taking your existing knowledge of real estate investment to the next level. That’s how you become bigger. Focus. If you ask me is it worth to pay 50k? Look at your financial. Do you care? Do you plan to sell soon?