Hi fellow forumites. I was just wondering if most of you aim at paying off your I/P debt or as long as you feel comfortable with your LVR do you not worry about it. I got to thinking that once loans are paid off you lose some tax benefits ( N.B. tax breaks are not my reason for investing).Do you think it is better to pay out loan, then pay tax on the rent or keep those extra payments for further I/P’s?
Regards
Marty
My aim is not to pay out loans but have a LVR ratio that I am happy with as long as I can sleep at night and afford repayments. To this end I fix alot of my interest rates on my loans.
The key is to have as many assets working for me as possible.
And this requires debt.
I’m with yack on this one.
Only I would actively seek to reduce my LVR as I got older and close to retirement (if you’re going to hang in there working that long!)
Hi Guys,
personally for me it depends on which property, if the property is +ve cashflow, and still can pay itself off, then on such properties that can do that, the aim will be to ensure over time that property is paid off, but still producing and incoming cashflow each week.
Cheers,
sisThe name of the game is maximising serviceable exposure through equity and minimising non-deductible debt.
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