All Forum Posts by: Eugene C.

@Pat L. that's really great advice, thank you!

@Roy N. thank you for your rapid response. That was my thinking exactly, so you have validated my point of view.

As a first timer there is always that little bit of nagging concern that I may be missing something that will come back to haunt me later, so it's wonderful to have access to the wealth of experience on BP!

Hello All,

I'm new to REI and I am busy negotiating my first deal at the moment. I'm starting small, so it's a single apartment unit, which I plan to rent out and hold indefinitely.

Whilst preparing my mortgage finance application I have been giving some thought to whether I should apply for a 20 or 30 year loan period. My thinking is as follows:

All else being equal and assuming I can secure the same interest rate for either loan periods, a 30 year loan will have a lower monthly repayment, giving me higher monthly cashflow. The downside is obviously increased total interest payment over the life term of the loan.

A 20 year loan will obviously have the opposite effect.

My question is, given that my strategy is "buy-to-let", am I correct in my thinking that the advantage of more robust cashflow from day 1 with a 30 year loan is more desirable than the lower total interest payment over a 20 year period?

Thank you in advance for all input.

Eugene