Just wondering if there are many investors out there that have fixed their loans for five years? I have current ip loans to $1.6m paying 5.4 % variable, if I fix my loans for two years I would save $166 pw and if I fixed for 5 years it would cost me around $90 pw, if the rate went upto 7% (long term average) I would be up for another $533 pw which would be a struggle. My current strategy is to buy high yeild and growth properties allowing me to purchase as many properties as I can over the next five to ten years. Then because I hate the idea of paying capital gains tax and I enjoy renovating my plan is to retire (now 44) moving into some of those properties and renovating them to improve the value then move into the next one, etc. This should elevate paying CGT for six years and help me get the best price for my property. I then will sell down my portfolio untill I'm debt free.
Back to the question, because my strategy is to buy and hold for a five year minimum should I consider taking advantage of the low 5 year rate and remove the risk of high interest rates? Is there something that could hinder my strategy taking the five year fixed rate? Like refinancing to release equity to purchasing other properties? Will I be able to buy other ip's with other lender's? What if for some reason I have to sell a property within the fixed term can I get out? Is there any other pit falls to watch out for?