rincipal&interest/interest only

Viewing 6 posts - 1 through 6 (of 6 total)

Monika
Member
@monika
Join Date: 2003
Post Count: 6
December 5, 2003 - 4:08 am
Hi all
Hope you are all having a great day, after all it is friday.
just wanted to see everybodies opinion about Interest only loans. When you are trying to locate a positive cashflow property, is it on an interest only loan?
Thanks all[]
Still in School
Member
@still-in-school
Join Date: 2003
Post Count: 1,844
December 5, 2003 - 4:41 am
Hi Monika,
I much prefer to use a principle interest loan, i rather pay the loan down, but at the same time, be one day able to own the property rather that just have payed interest, though if you are just doing a buy and hold, then quick sell. Then interest only maybe a better choice.
Though a prinicple interest loan, your repayments are much higher than an interest only loan. Its a decision you have to make yourself in the end.
cheers
s.i.s
Save on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”
Monika
Member
@monika
Join Date: 2003
Post Count: 6
December 5, 2003 - 8:34 am
quote:
Hi Monika,
I much prefer to use a principle interest loan, i rather pay the loan down, but at the same time, be one day able to own the property rather that just have payed interest, though if you are just doing a buy and hold, then quick sell. Then interest only maybe a better choice.
Though a prinicple interest loan, your repayments are much higher than an interest only loan. Its a decision you have to make yourself in the end.
cheers
s.i.s
Save on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
December 6, 2003 - 3:48 am
Is your PPOR loan fully paid off? If you, you probably should direct all extra repayments to this loan, rather than paying down deductible debt.
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
December 6, 2003 - 7:33 am
Do a search as there was a pretty detailed thread on the Property forum.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Monika
Member
@monika
Join Date: 2003
Post Count: 6
December 7, 2003 - 3:18 am
Thank you all for your answers, i did notice it was another question posted in one of the other forums regarding the same topic.
Well, anyhow, im glad that im not the only one.
Take care []