Ep. 93 - The Power of Debt Reduction

Help Shape The HMO Property Show! Tell us what you love, what you'd change, and what topics you want next. Take our quick survey here: https://wkf.ms/419QNLa In this episode of the HMO Property Show, host Neil Gabe discusses the power of debt reduction in property portfolios. He explains that while interest rates have risen significantly, putting many investors underwater on their properties, HMOs are still cash flow positive, though the cash flow is not as high as it was previously. To address this, Gabe suggests focusing on reducing debt and lowering the loan-to-value ratio (LVR) to become less reliant on banks and improve long-term cash flow. He also discusses the aggressive lending terms offered by new lenders in the HMO space, and how the big banks are likely to enter the market soon with more attractive rates and terms. Ultimately, Gabe emphasizes that paying down debt can significantly increase an investor's cash flow and allow their money to work harder for them. Key points covered: Interest rates have risen significantly, putting many investors underwater on their properties While HMOs are still cash flow positive, the cash flow is not as high as it was previously. Focusing on reducing debt and lowering the loan-to-value ratio (LVR) can help investors become less reliant on banks and improve their long-term cash flow. New lenders in the HMO space are offering aggressive lending terms, but the big banks are likely to enter the market soon with more attractive rates and terms. Paying down debt can significantly increase an investor's cash flow and allow their money to work harder for them. For more information, visit For those that prefer to watch you can also catch us on YouTube. Want help with your investment strategy? Reach out to us for a free, no-obligation initial chat with our team and see how we can help you with your investment journey. Book Now Join the Perth HMO and NDIS High Cashflow Investment Properties Facebook Group.   The HMO Property CoWebsite: www.thehmopropertyco.com Instagram: @the_hmo_property_co FaceBook: The HMO Property Co LinkedIn: The HMO Property Co YouTube: The HMO Property Co TikTok: thehmopropertyco_ Spotify: The HMO Property Show Apple Podcast: The HMO Property Show   Living Rooms - https://livingrooms.com.au/ Disclaimer Nothing on this channel should be considered tax, financial, investment or any kind of advice. Everyone should do their own due diligence as only a professional diagnosis of your specific situation can determine which strategies are right for your situation. Our goal is to frequently feature edgy and actionable value, thought leadership and property/investment strategies.