Is Honesty Over-rated?

Is honesty the best policy?

Do you tell people the truth in business, relationships and in what you do?

Do you offer guarantees you don't plan on providing or making promises you know you can't keep?

When you say you'll do something or won't do something - it is your actions that will speak louder than your words.

Fakes and liars usually get caught out eventually, so why start that way?
Do you have a hidden agenda when you start a communication or tell half-truths to get what you want?

Those that lie to get what they want… shame on you!

Is that the best way to start off in business or a relationship?

In a world that is short of honesty at the moment and full of fakes, you will stand out from the crowd and attract people, business and opportunities to yourself.  I've always been pretty honest with everyone, now even more so and I find it works wonders.  In relationships, job interviews, business meetings and friendship.


Tell business partners what you are able to offer with 100% certainty versus what you hope you might be able to do.  It's OK to say you don't know as well and that you will find out, instead of B.S. your way through.

Tell your customers the truth about what you can and can't do.  Maybe they will buy something else or come back again knowing you aren't going to try to sell them crap.

People find it refreshing and know you have integrity from what you say and how you say it.
For example with a job or relationship, can you guarantee how it will work out or how long it will last?  Many will come up with all sorts of waffle, when in reality you can either refer to past experience (remember past performance is still not a guarantee of future performance) or just say that you will do your best and make sure if things change, you will be open and honest and make sure the issues are fixed before dumping the project.

When you tell the truth, you will feel better about yourself and allow others to feel better that they can be open too.


- Go on give it a try.  Tell your partner something honest today that you've wanted to get off your chest and ask them if there is anything they'd like to say.  Chances are the conversation won't go as badly as you imagined and if it does (I can't make any guarantees it won't) - you may feel bad in the moment but this is only temporary, as afterwards you will feel much lighter.


Having shared a secret that was burning you up inside, you will find the burden lifted when you don't have to protect it and hold it close any longer.

Sometimes more problems are caused by what remains unsaid versus what is said.

People lie to get a short term gain and do not want to feel any short term pain.  The thing is when the lie catches up eventually, you are likely to feel more pain.

It may start with one small lie, then it grows and moves to other lies and eventually you will forget which 'story' you told.  It is much easier to live one honest life than try to remember many fake stories.

Why would you want to keep the people that you know and care about guessing, when you can clear everything up for them with the truth.

- Are you able to be honest today with someone or does it scare you that much?

Guess what, if there is something that you can't tell someone else, then it is only yourself you're lying to and being dishonest with!

The biggest challenge people have is being honest with themselves about what they can or can't do and what is really true.

Never say never, as there may be things that you are selectively forgetting so you can be 'right' as opposed to 'honest'.

How many lies do you tell yourself everyday? You can change anytime.

When you lie to yourself and argue with others (or self) about how things are, you are creating a reality that may not serve you best and may not be true or honest.

"Argue for your limitations, and sure enough they're yours." - Richard Bach

When you start to tell the truth and people see, hear and feel it - you will be someone that they can trust more than all the other people they know.   The bonus is that you will also start to trust yourself more too.  If you are honest with yourself, you're less likely to make stupid ego-driven mistakes.

So take a stand for truth, honesty and integrity and watch your world change.

Please note honesty does not apply to lawyers, solicitors and career politicians as they are used to twisting the truth. So no matter how truthful you are, they will always bend it to what suits 'them' through legal double-talk.  No offence intended if you fall into these categories - I just had to be honest about this too!

Repayment v Interest Only

This has always been a popular topic for property investors.
Should they keep their payments low or high and build some more equity?
Should they pay off their debt as they go along or pay it off at the end with the sale of their property?

There are a few options to consider but what is best for you?
Well only you know the answer to that but let me first give you some facts (or things I believe are true from my experiential truth).

I know my opinions are not always popular but they are true.  My ideas may not be mainstream (pop-News style) but why would you read what I wrote if they were ;-)

As you know I have nothing to sell so come from a place of honesty, integrity and truth.
I'm not suggesting those with things to sell aren't, just that occasionally they may mislead you just a little to get a sale. (I really should charge for my insights!)
My 'sale' does go directly into the Universal bank account, which you fund by reading, paying attention and taking Action if necessary.


Quick History lesson - Mortgage

Origin of the word Mortgage is from 1350–1400;
earlier morgage Middle English < Old French mortgage,
 equivalent to mort: dead (< Latin mortuus ) + gage:  pledge
= A pledge till death!

Repayment -v- Interest only?

Once you're involved with this pledge, which is the right payment to make?

Well it all depends, as always.  What does it depend on you may ask, well on your cashflow and equity!

If you invested recently, have good equity and high cashflow, maybe from a HMO, then repayment may be a good option - but what if you didn't…

Banks and population control 'dogma' has taught us that is a good idea to pay a mortgage off using repayment over a long term - NO!  This 'may' be true on your own home - but that thinking too has changed too now for some.

Firstly Cashflow 

Consider the following:
How is your cashflow?
Can you afford your current interest payments at the moment?

Now consider risk planning.
Did the apartment you buy have 'hidden' (as in the small print) service charges?
Is the boiler regularly serviced and insured? What about the pipes and other appliances?
What if your tenants leave with arrears and damage?
As you know you may have big bills that occasionally turn up unexpectedly or tenants leave a property and you have damage and vacancies to deal with, so it is good to keep some money aside.

Also when interest rated go up how is this going to affect your payments?
Might it not be a good idea to put some money aside now to cover for this later?
Many landlords have been lucky and are still in business because of low tracker rates but it's not going to last forever.

Do you want your cashflow to be in or out?

Next Equity

Many investors I know bought properties pre-2007 before the crash and have lost their equity and more.

Now if you think the markets can't go lower, did you think prices would fall 10% from the peak or how about 20%?  Well I think they fell around 25% and there is still plenty of downside.
So do you believe they could possibly fall another 25%? If not, why not… they already fell 25% and the USA has got some places where they fell 50% and more!  It could happen here too!!

So how is your equity position?
If it's good you might consider repayments and get the mortgage paid off sooner (I never said it was a bad idea to pay the properties off)

BUT if you're in negative equity (along with cash-flow challenges) then why would you increase your payments to give the Bank more money, making your current position worse and cash-flow even tighter?

Consider what else you can do with the money like putting it aside for higher interest rates or contingencies. Maybe even investing it elsewhere.

If you are doing repayment and still paying off negative equity and the market gets worse, then you're more likely to go bust and have been worse off in the duration.
If you do get into positive equity, there is still the risk of going bust - so why not leave the risk with the fat cat bankers who can afford it?

Of course if the market improves and you ride the storm through, then the equity will return and you can either make repayments then or sell the properties.

Remember you have to make it to the finish line to Win - and right now companies, corporations, businesses and even Countries are failing to do that!

This informational/ rationale/ thinking doesn't only just apply to your investments.

I have an intelligent friend who is thinking the same about his house and believes there are signs that property might go down another 90% (as this will hurt your head we're not going to cover this figure or reasoning right now) - just know that some markets in the US are down over 50% and who thought that would happen!?  He is happy to make interest only payments, invest the difference somewhere and let the properties go to the Banks if the situation gets worse.

If you get into financial difficulty later, they will try to take your house, even if you have plenty of equity in it!  You're just a number to cross off, a liability and an annoyance if not paying them more and more every month.

- No payments is also an option but I won't be discussing that here.
Yes it really is, if you're struggling you can stop paying and default.
Better to do it now than fund a bad position.
If you have no access to Government funding and bailouts it is easily justifiable.

People have to start treating houses and investments like business decisions not emotional things they have to hang onto.  When the business is failing get rid of it. 
The Banks do NOT give a merde (excuse my French) about you, so why should you care about them?
They've already been paid because they failed!  Don't let it cost you more if you have an option to give them less.

Want to hear the truth from the horse's mouth? Well your local branch of the Bank is a good place to start and you will be able to deduce the truth from what they won't say

Speak to your Bank Manager or Relationship Manager (aka. payment chasers with fancy titles) at your local Bank, as the call centres aren't paid to provide service and answer questions and Regional Managers and CEO's are too important to deal with you the lowly customer.  Someone in your branch can't 'accidentally' hang up on you or keep transferring indefinitely.

Ask them what they recommend would be the best payment method for YOU.  And wait for the answer…
You'll be surprised how they may start to waffle, start speaking legal or say they can't give advice.
If they do answer your question - (which was what is best for you) they will tell you to pay off your debt faster and give the Bank your money.

Really!?
Try it and see how much honesty you get with respect to you, as opposed to them looking after only the Bank's interests.


So which payment?

If you've thought it through, it has to be interest only in my opinion - saving the money for when rates go up and your payments increase or investing it somewhere else.

If the property market improves then great, the equity problem will fix itself.

If it doesn't improve, then at least you didn't feed the Banks from the bottom at the same time as the Government fed them from the top! Screwing you in the process if things don't work out.
Remember the house (bank) is always set up to Win (even if it means cheating) - so stop playing by their stacked rules!

Do what's RIGHT for YOU and your family! 
Not what a Bank employee says because they want to keep their job or hit their bonuses.



Bonus legal stuff


If you have a bigger portfolio and money to spare, do what the corporations do and separate the assets into 'good' investments and 'bad' investments.  This is all legal, though not very honest in my book - but it's OK as you would only be following the examples of our dishonest Government, untrustworthy leaders and the corrupt soul-less Corporate bankers.
Legal is a term used to turn dishonesty into 'acceptable' by lawyers and judges.

That way you can dump the bad assets or sell them on (sub-prime style) if they don't go well.
Please check the legalities of this with your accountant and solicitors - but note the answer may change the higher the fees you pay them (just how the system and lawyers work).
Find those lawyers (and judges) that re-represent councils, governments and Banks to find those with lower standards.



If you are having problems with your portfolio then give us a shout, I know we can help you turn it around or make it less painful making the changes you need to!


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