Tim,congratulations on the home. Hard question. Do the numbers I suppose. The cost of buying shares with a small amount can negate the value but the same small amount off the principal loan level could be more cost effective and profitable. DRP on existing stock still helps the port grow without brokerage costs. (preaching to the converted? )
I have been a debt free homeowner for 23 years and certainly recommend the reduced mortgage scenarine less thing to worry about.
I.M.O. Sensible decision on URB as I think it will grow just like a house will in value. but nothing is set in stone. Not even Brickworks
What will you save/gain in paying extra on the mortgage as oppose to the gain of that money in the market.
If the market does fall like 'expected by the boffins' then the opportunity to re enter is still viable at a far reduced rate?
I am not one for leverage borrowing in shares . But if you have a larger amount say $50k earning 4.5%- 6.5% plus Franks share, would that be better applied to the mortgage in bi-annual hits ?
How much benefit in $$ do you get with the loan if you reduce the Principle ?
anyway..i hope that is not too rambling .
BKW Price at posting:
$18.28 Sentiment: Buy Disclosure: Held
ne less thing to worry about.
(20min delay)