All Topics / Help Needed! / Mortgage for PPOR

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  • Profile photo of salilkanheresalilkanhere
    Member
    @salilkanhere
    Join Date: 2007
    Post Count: 8
    February 1, 2008 - 2:49 am

    Hi folks,

    I am new to property and have been reading up several posts on this forum for the past month or so to start understanding the basics. I have also just finished reading Michael Yardney's book and Steve's 0 to 135 properties book and am now keen to enter the property market. I (We – married) currently don't have any property :(. We have around 100k$ ready for a deposit and are currently shopping around for a PPOR.

    I have seen several suggestions about taking out an interest only loan with a linked 100% offset account for IPs. However, does it make sense to use the same kind of mortgage for a PPOR or would it be better to go for P+I loan ? Depending on the kind of property we end up buying, we might consider turning it into an IP in 2-3 years. In which case I presume a IO loan would be better to start with. However, if we buy a property that we find good enough to stay in for the long-term (6+ years), would it make sense to go for a P+I loan ? BTW, we are looking to purchase an IP after the PPOR (once we have enough for another deposit).

    Thanks in advance for any suggestions.

    cheers
    salil

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    February 1, 2008 - 4:49 am

    Even if you stay long term having a IO is better I beleive. You can still save the same amount of interest by putting the extra money into the offset account and if you do change your mind and move out you will be much better off at tax time.

    With IO loans you could also chose to pay it off as a PI too and then just reduce the repayments if you decide, however if you started on PI you would need to reapply to change to IO (usually).

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of mi_chellemi_chelle
    Member
    @mi_chelle
    Join Date: 2008
    Post Count: 1
    February 1, 2008 - 6:40 am

    I have an investment opportunity for someone who has $60-65k at a rate of 15% per annum. The investment term is for between 3 months – 12 months maximum.

    This is more than you are likely to make on a new purchase in the same amount of time, especially given that you will lose money on stamp duty.

    There is a time constraint and I would need to hear from you by 5.00pm Monday 4th Feb if you are interested in hearing more. I can be contacted on 0438 098 924 over the weekend or on Monday.

    Please call me if you are interested and would like to hear more about this opportunity.

    Regards Michelle

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    February 1, 2008 - 11:04 am

    Michelle

    if it is such a great deal why not post it on the forum and you will get more takers.

    Richard Taylor | Australia's leading private lender

    Profile photo of JONCHUJONCHU
    Member
    @jonchu
    Join Date: 2004
    Post Count: 112
    February 1, 2008 - 11:30 pm

    the good old "chicken close" pitch, never works…

Viewing 5 posts - 1 through 5 (of 5 total)

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