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Locked and collared by tarazkp

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· @tarazkp ·
$30.04
Locked and collared
<div class="text-justify">

It has been a good day. 

We sold our apartment. Secured a loan for another. And, a loan for the renovation work we need to do. We are pretty happy 😊 It is funny being happy about going heavily into debt, but we are pretty stoked that we have at least a chance to do what we want to do with this place.

![OI000134.jpg](https://files.steempeak.com/file/steempeak/tarazkp/QptX8BDu-OI000134.jpg)

We also put a collar on the loan meaning, added some protection against rising interest rates, as they are the lowest they have been. I am not sure if it is a good thing, but I remember my parents struggling through ~20% interest rates in the early 90s. We can remove the collar later, if needs be.

I am really happy. Very little has gone our way the last few years, and it has taken its toll on health and relationships, with health being a major source of pain and expense.

We were resigned to doing it the hard way with the renovation work, but I am very glad we have some backing and don't have to kill ourselves to make it happen. I think that we were even able to negotiate a decent deal on the loan that gives us done flexibility and opportunity to work with. 

Banks rarely lose of course, but their biggest gains are made by those who do not look at what all these little numbers mean and what happens if they change slightly.

I think many people want to have the best of it all and take loans they can't afford with the understanding that they will be better off later and will cope okay. I had lunch with a friend today who said that we could take a bigger loan because my wife is at the start ogmf her career and can expect to advance in earnings. Yes. But assumptions are always dangerous. 

I believe that the housing bubble is going to burst and in Finland, there are a lot of people pushed to their max spending limits and foemrced to buy new homes, even though interest rates a low. When they increase a bit and people start selling what they can't afford to maintain, it is going to have a domiko effect and the dump will drive prices into the ground. We have estimated that we can survive in quite extreme interest rates and above the 6% stress test they use to check fitness. I feel that sevel of stress testing gives a false sense of security.

It is hard to know what will happen, but we were able to collar the loan for 10 years and of nothing happens in that time, we will lose the little we pay each month. However, we are 12 years out since the 2008 GFC and the only economic certainty is, it always crashes. The next crash is going to be harder than the last as the economy is more broken than it was with fewer working tools to adjust it.

For now though, I don't want to think of such things and will choose to instead spend my energy considering the work that needs to be done, the designs we will contemplate and just being glad we have the opportunity to build something that is ours. 

Well, mostly the bank's. 

Taraz
[ a Steem original ]

</div>


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vote details (488)
@cryptoandcoffee ·
Very happy for you guys that you can finally work on a  project. Not easy though ,but they say it is so rewarding. I also paid a little extra to give the insurance of just in case the rates change. The good thing though if the market does crash you have bought a doer upper and can still make money back.
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@ddrfr33k ·
$0.03
I saw the title and my mind immediately went in the gutter...

Congratulations, by the way!
👍  ,
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@misterengagement ·
<center><div class="center">https://steemitimages.com/0x0/https://cdn.steemitimages.com/50x50/https://cdn.steemitimages.com/DQmdHfkhCPGYcfUqZqT4Br3nsmCpeVPj1BcLoepVX2PYeAE/engagetoken.png/ </div><br><br> @ddrfr33k you have received `20 ENGAGE` from @tarazkp!<br>View and trade the tokens on [Steem Engine](https://steem-engine.com?p=market&t=ENGAGE).</center><br><hr><center><sup>This tip bot is powered by witness <a href="https://untersatz.steem.design">untersatz</a>!</sup></center>
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@tarazkp ·
>and my mind immediately went in the gutter...

That is where my mind starts ;D

Thanks!

!ENGAGE 20
👍  
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@fknmayhem ·
> I believe that the housing bubble is going to burst and in Finland...

I doubt it. With the climate crisis definitely going to have an impact, Finland will become one of the most livable places in the world.

There may be a small blip in the bubble in coming years but mid-term Finland, and the whole of Scandinavia, as well as Canada will be very viable real estate investment locations.

On a different note: congrats to both of you. 
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@tarazkp ·
In the mid-term, for sure. And with the changes in climate it will soon be sub-tropical and a holiday destination :)

Thanks.
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@galenkp ·
...And now get your ass to work preparing the guest room for July...Something like this will work fine.

![rustic-attic-bedroom-wood-burning-fireplace.jpg](https://cdn.steemitimages.com/DQmR3DLckEvGy7rVqZyydiLPaPZfyJuFDqi1yPTrRZfE383/rustic-attic-bedroom-wood-burning-fireplace.jpg)

I think the collared interest rate (fixed) is a good option. It lets you work off a known amount and whilst it may cost you a little extra through not being able to take advantage of rate drops, you make it up in peace of mind. We have a variable at the moment, for the first time in 20 years due to low rates here and will revert to fixed as it rises. It's all about catching the trend, before it happens...


Now...Get that guest room done, July ain't far!
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@tarazkp ·
It is going to look a lot like that when you arrive here. Especially the antler chandelier. 

Yeah, and ten years is a long time and there is a lot of market volatility to come I believe. The cost of rate drop can't really go much lower than it is now, unless they start paying directly to take loans.
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@galenkp ·
You'll be the one smiling if those rates go up, and having the rate locked at a comfortable level for your budget is a good option. Means you know where you stand. 

Don't set my hopes on bloody antlers in the guest room if there'll be none...If it's going to be, let it be! I wouldn't mind a big bowl of M&M's too...With the yellow ones picked out. Who even *eats* the yellow ones anyway? Lol..
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@insaneworks · (edited)
Congratulations!

You do know that we all expect to read <strike>horrible</strike> awesome renovation stories. :)
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@tarazkp ·
You know they are coming, it will just take time for us to hire some Finnish tradespeople ;D

Should be fun!
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@insaneworks ·
I have stories of "professional" renovators too. Not the most horrible stories but not all pretty either. We can someday compare the stories. I hear plumbers are the worst. But I'm sure you do not need those...
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@meesterboom ·
$0.03
Congrats, man. It's awesome getting the sale and a good mortgage deal. You can't go wrong with a capped mortgage I think
👍  ,
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@misterengagement ·
<center><div class="center">https://steemitimages.com/0x0/https://cdn.steemitimages.com/50x50/https://cdn.steemitimages.com/DQmdHfkhCPGYcfUqZqT4Br3nsmCpeVPj1BcLoepVX2PYeAE/engagetoken.png/ </div><br><br> @meesterboom you have received `20 ENGAGE` from @tarazkp!<br>View and trade the tokens on [Steem Engine](https://steem-engine.com?p=market&t=ENGAGE).</center><br><hr><center><sup>This tip bot is powered by witness <a href="https://untersatz.steem.design">untersatz</a>!</sup></center>
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@tarazkp ·
$0.03
Cheers! I am looking forward to getting in there and poking around. The house as well!

I do reckon the cap might come in handy over the next 5 years and for the price, it might only take a few months to pay itself back.
👍  
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@meesterboom ·
5 year ones are the best balance I think. That's what I did. I remember people paying 15-18% here back in the day and bugger that!!!
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@tarazkp ·
!ENGAGE 20
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@revisesociology ·
$0.03
Congratulations. 

I know what you mean tho' - it's come to something when we celebrate debt! 
👍  ,
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vote details (2)
@misterengagement ·
<center><div class="center">https://steemitimages.com/0x0/https://cdn.steemitimages.com/50x50/https://cdn.steemitimages.com/DQmdHfkhCPGYcfUqZqT4Br3nsmCpeVPj1BcLoepVX2PYeAE/engagetoken.png/ </div><br><br> @revisesociology you have received `20 ENGAGE` from @tarazkp!<br>View and trade the tokens on [Steem Engine](https://steem-engine.com?p=market&t=ENGAGE).</center><br><hr><center><sup>This tip bot is powered by witness <a href="https://untersatz.steem.design">untersatz</a>!</sup></center>
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@tarazkp ·
The next debt related celebration will be paying it off in two years with crypto :)
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@revisesociology ·
Fingers crossed! 
properties (22)
authorrevisesociology
permlinkre-tarazkp-q5v65v
categoryhive-174578
json_metadata{"tags":["hive-174578"],"app":"steempeak/2.2.8"}
created2020-02-17 20:56:18
last_update2020-02-17 20:56:18
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@tarazkp ·
!ENGAGE 20
properties (22)
authortarazkp
permlinkq5v43b
categoryhive-174578
json_metadata{"app":"steemit/0.1"}
created2020-02-17 20:11:27
last_update2020-02-17 20:11:27
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@ryivhnn ·
Yay that's awesome news :D Have fun building your dreams :)
properties (22)
authorryivhnn
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categoryhive-174578
json_metadata{"tags":["hive-174578"],"app":"steempeak/2.2.8"}
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last_update2020-02-18 14:19:42
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@steemitboard ·
Congratulations @tarazkp! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :

<table><tr><td><img src="https://steemitimages.com/60x60/http://steemitboard.com/img/notifications/postallweek.png"></td><td>You published a post every day of the week</td></tr>
</table>

<sub>_You can view [your badges on your Steem Board](https://steemitboard.com/@tarazkp) and compare to others on the [Steem Ranking](https://steemitboard.com/ranking/index.php?name=tarazkp)_</sub>
<sub>_If you no longer want to receive notifications, reply to this comment with the word_ `STOP`</sub>


To support your work, I also upvoted your post!


**Do not miss the last post from @steemitboard:**
<table><tr><td><a href="https://steemit.com/steemitboard/@steemitboard/valentine-s-day-challenge-give-a-badge-to-your-beloved"><img src="https://steemitimages.com/64x128/http://i.cubeupload.com/LvDzr5.png"></a></td><td><a href="https://steemit.com/steemitboard/@steemitboard/valentine-s-day-challenge-give-a-badge-to-your-beloved">Valentine's day challenge - Give a badge to your beloved!</a></td></tr></table>

###### [Vote for @Steemitboard as a witness](https://v2.steemconnect.com/sign/account-witness-vote?witness=steemitboard&approve=1) to get one more award and increased upvotes!
properties (22)
authorsteemitboard
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