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Old 11.11.2020, 09:23
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Phil_MCR Phil_MCR is offline
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Re: Should I buy a home or invest? I just reached 200k in savings and they are sittin

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Imagine I buy a 400k property (200k cash and 200k mortgage) @ <1% interest, locked in for say 10 years.
If the interest rate climbs up drastically suddenly/gradually, what should my best course of action be after 10 years? Sell it? Pay the remaining 200k off?
The property is meant to be my future retirement place (in 15 years) and holiday destination now already (weekends).

Plenty of decent properties to be had for under 400k if your needs are humble (I am single, child free and a low maintenance person). Obviously not in hot spots but as I am a goat herder, I am looking for non-populated mountainous regions.
Let's say rates go up to 6% and the property value goes down to 200k. Then options:

1. you can pay 1k a year in interest
2. you can pay off 200k of mortgage
3. you can sell the house and use the proceeds to pay off the mortgage and then go find somewhere to rent
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