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Old 02-26-2010, 08:41 PM   #4
Steve_A
Project Avalon Moderator
 
Join Date: Sep 2008
Location: Northeastern Brazil
Posts: 1,259
Default Re: Rent it or sell if for cheap?

Hi again Julius,

Sorry about the questions, but they are necessary. Is the mortgage a fixed rate mortgage, is it dolarized or is it an endowment type where you only pay the interest and a part of your capital is placed into an investment fund?

If the property is easily rentable and you do not intend to use it soon, I would rent it anyway independent of what you are thinking to do for several reasons.

You will get an income;
The property will be maintained of for (almost) free;
The property will be protected for free;

If everything is done legally and you have the right kind of mortgage (fixed dolarized) you can be rest assured that if your currency collapses you can get your rent to pay off your mortgage and even have some left over to do your groceries. I know this as I bought a car here in Brazil with fixed payments in Reais (national currency). When the value of the Real was halved against the dollar and inflation rose the car became almost for free!


Best regards,

Steve


Quote:
Originally Posted by Julius View Post
Thanks Steven.
I'll put it this way:
The mortgage is in Canadian funds and I have only paid interest on it.
It can be rented quite easily.
To give you an example:

Say the mortgage is worth $100,000 at 2.25% at the moment. The home is worth $150,000. Rent can get me, say $500. Say the Canadian dollar devaluates (hypothetical speaking) in 2 weeks..and I have a chance to act on this tip (hypothetical speaking), what action would put me out ahead?


People, I'm not saying the Canadian dollar will devaluate nor do I have any hidden inside information..I'm just hypothetical speaking.

Thanks

Last edited by Steve_A; 02-26-2010 at 08:46 PM.
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