Hi all
Just a quick couple of questions
– with banks charging a higher interest for IO loans, has this changed how people structure their loans? Ie. Are you going P&I to get the lower rates? Particularly people in the expand phase like I am!
– I believe I know the answer. If I draw down a LOC for investment purposes can I use the money to find renos / repairs across multiple IPs? Or are there any negative implications?
Thanks!
Hiya,
Horses for courses, but i still go IO on all of them. The rate doesn’t affect the “applicableness” of it for me.
You can do this. Do not mix both deductible and non deductible expenditure in it. But if its all deductible expenditure then its ok, but still keep track of which properties its spent on. A good accountant come tax time will then apportion the interest between properties.
D.T. | DT Property Management
http://www.dtproperty.com.au
Email Me | Phone MeAdelaide Property Management - whole Adelaide metro
Most of my investor clients still opt for IO – unless they don’t have a PPOR/non deductible debt then P&I might be a good choice.
Having said that – there aren’t many lenders that penalise you for having IO repayments (NAB group are an exception rather than the rule).
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]
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