Hi,
Was wondering whether anyone had an opinion to offer? I have a house value $280000 and a set of duplex value $400000, gross rent $645. I currently owe $417000 and have a P and I loan. I have no trouble making repayments and ploughed an extra $20000 into as extra redraw. I just don’t know whther I’m on the right track?Thanks
seems like a good strategy.
Read some of Margaret Lomas books, She advocates a style of property investing whereby you buy property, pay it off as quick as you can until the expenses are covered by the rent coming in, then buy some more property etc. This seems similar to what you are doing.
One of her books “positive cashflow investing” is good (i think thats the title)
If you wanted a more aggressive hands on approach to investing, then you could buy more property and develop/renovate/wrap whatever.
NOW WITH THE MORTGAGES….
Make sure that you only pay off extra money on your PPOR. Keep this P+I.
Leave your Investment Properties loans on Interest Only loans. Don’t pay off extra on this at all
You would only ever pay extra off your Investment Loans if you had paid your own house(Principal Place Of Residence = PPOR) and any credit cards and any car loans and any store cards and any personal loans.
This is because you can’t claim any of these personal types of loans as a tax deduction.
got it?
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