Tuesday, August 16, 2011

Consolidation; the continual mind fuck.

Warning: Language warning! Ops, too late.

Sorry everyone, it's the only term I could use to actually describe how I feel pretty much day to day about my current portfolio. We are settling into our PPOR very nicely thank you very much, so much in fact, that I am thinking about consolidating our assets to pay down our current mortgage. Wouldn't that be nice? A nice little mortgage to go with my current wage, I could finally venture into that business idea I have. But then an evil annoying voice in my head tells me to stop being stupid and to wait it out; after all, it's not a sellers market. So here I am, getting mind fucked by this decision. Sell now for short term gain, or hang onto the properties for just that little bit longer, perhaps a lot longer. 

I see issues with both sides of the story. For example, selling up, as you all know, would mean 'all the eggs in one basket' so to speak, all the profit and equity sitting in our PPOR. This on the face of things is not so bad, but imagine when we come out of this slump, imagine the possible increases I could be missing out on in 3,5 perhaps 10 or 20 years time. Mindfuck indeed.

On the other hand, I REALLY want to start a business. I am CRAVING to start a business and this is starting to weight heavy. I could, at a pinch, commit the required funds, but then the doubts set in; what if it fails, what if it's just a money hungry nothing, what if it doesn't generate any income AT ALL? Doubts, failure, problems and work. So I need a buffer,and consolidation would do that nicely. 

Realistically, perhaps I need to go back to the buzz word of 2008, which, in my line of work was 'balance' and it's still very true today. I need balance, I shouldn't downsize fully, but a bit more cashflow would be great, just so I can kick off this business once and for all. Maybe I'll just sell the non-cash flow ones, or perhaps the properties that are CF- and are non performers; what to do, oh what to do?

Until next time! 


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