Getting older – loans approaching end dates

Discussion in 'Loans & Mortgage Brokers' started by Hebro, 19th Feb, 2020.

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  1. Hebro

    Hebro Well-Known Member

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    We went through the accumulation phase and then added value with a couple of subdivisions.

    All loans now P&I, with an average of about 10 years to maturity. Cash flow is OK.

    Have to confess we did not spend enough time thinking about the end game. But I am now.

    Deductible debt will start declining at a faster rate.

    Haven’t borrowed for a while, assume it’s harder as we approach retirement.

    What other issues are there as loan maturity approaches?
     
    Hebro, 19th Feb, 2020
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    age can be an issue
     
    Terry_w, 19th Feb, 2020
    #2
  3. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Age is easily mitigated with a good exit strategy - get some specific advice. We've never had any issue with long loan terms on investment properties.
     
    Jess Peletier, 19th Feb, 2020
    #3
    kierank likes this.
  4. kierank

    kierank Well-Known Member

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    I believe security and serviceability are bigger issues.

    In other words, if security and serviceability are good, then age shouldn’t be an issue.

    Having a good exit plan helps as well.
     
    kierank, 19th Feb, 2020
    #4
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    not enuff data

    We had an 84 yr old that was provided a 30 year loan term :)

    ta
    rolf
     
    Rolf Latham, 19th Feb, 2020
    #5
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Death is generally not a good exit strategy either.
     
    Terry_w, 19th Feb, 2020
    #6