Should I set up my investment property as Interest Only repayments, and why?
Maybe.
Do you have any non deductible debt such as an owner occ loan?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi @jamie-m,
Yes I have a second OCC loan. I am led to believe most investors set up their other loans as interest only?
Kindest,
ChristineAs Jamie said it depends.
Yes I do because I want to minimise my weekly spending and maximise my cashflow efficiency. Not having to service the principle component means I get to hold positive cash flow property costs covered by rent (or if negative it still costs much less per week) this means I have more money for my next investments.
Of course if you are nearing retirement, have oodles of cash and no plans to buy more (and your own place is paid off) then go ahead and pay down prIncipal it has to go eventually.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Hi Christine,
Just in case it is a help, do take a peek here:-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/There is a specific post in that link that tackles the question “Why use IO loans and not P&I loans?”
It may expand on the WHY you should use IO area. Of course, though IO can be beneficial to many, it doesn’t suit ALL.Enjoy – and I hope it helps to direct your steps,
Benny
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