Where do I put my money??

[RENEE2003Member@renee2003Join Date: 2003Post Count: 11]

September 22, 2003 - 9:16 am

I will have one ip rented out making a profit whilst I will be living nearly rent free in another house. My question is why shouldn’t I put my extra money saved into my ip?? Wouldn’t this help reduce the interest?? I have a loan where I can redrawer any extra money out of the loan account at any time so when i choose to purchase another ip I can take it out.

Any advice please !!

[Chris-SydParticipant@chris-sydJoin Date: 2003Post Count: 75]

September 22, 2003 - 10:20 am

Hi Renee2003,

There is no reason you could not do that. While the loand and interest go down you will be making a bigger profit.

This will allow you to get more equity in the IP until you are ready to buy another IP.

---

Chris

All post are IMHO.

[Mortgage HunterParticipant@mortgage-hunterJoin Date: 2003Post Count: 3,781]

September 22, 2003 - 10:21 am

Renee,

There is no real reason why not. As long as you don’t use it for non investment purposes or you will mess up your interest for your tax return.

If you think you might spend it on personal items then offset is the one.

Cheers,

Simon Macks
Mortgage Hunter
[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.

[RENEE2003Member@renee2003Join Date: 2003Post Count: 11]

September 22, 2003 - 10:55 am

Thanks makes better sense now. I put mine and my husbands whole income fortnightly into our home loan and then redrawer at the beginning of each month to pay off our credit card. So with a savings account on the side I can still do this and pay my ip off sooner.