Advice on repayments of my IP

Hi Mat

I'd be inclined to set it up as interest only with an offset. Instead of paying down the principle – place your spare savings into the offset. This way, if you buy a PPOR in the future, you can move your funds from the offset onto your PPOR – effectively reducing your deductible debt whilst increasing your deductible debt.

I wrote a blog entry on this recently. It's available here

Cheers

Jamie

Sorry should have read "non-deductible debt" Cheers Jamie

Excuse me being a little naive but I’m new to all this stuff. By offset, do you mean pay the interest only loan and also have an offset of “$$” that are left over from your rental income which would chip away at the loan?

Thanks in advance.

Aaaah fantastic. Thanks Jamie. I’ve been wondering what that was called. My current investment property is not far off being positively geared so i wanted to look into what that was called as i want to set this up for when it is finally making me some cash. I assume if i refinance (i want to do this regardless) this is something i can do during the process correct?

Thanks Jamie,
I have spent the last few months working on paying off credit cards and apart from that my only loan is for my car. My IP was my residence but i have since moved interstate and am now using it as a rental (this was my plan all the long). But from now on I’m renting so i am not restricted when it comes to my buying capacity. First priority is to eliminate as much debt as possible then ill be set and have less monthly costs so i can spend more money on making money lol if that makes sense.