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  • Profile photo of chrisb123chrisb123
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    @chrisb123
    Join Date: 2009
    Post Count: 9
    November 11, 2009 - 5:33 am

    Thanks very much for the feedback, i am starting to get my head around it now.. Only thing i'm still not quite sure about is..

    Once the 10 year interest only period finishes, all of a sudden my repayments shoot up through the roof??? With 4,5,6 properties or more, how do i service the loans?

    Profile photo of chrisb123chrisb123
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    @chrisb123
    Join Date: 2009
    Post Count: 9
    November 9, 2009 - 3:38 am

    ok.. i really appreciate the feedback.. but i am still a bit confused about a couple of things..

    I understand that having money in the offset account reduces the interest payable, and can be used as a deposit for a future house, but how do i ever build equity in my investment property, especially if i have 10 year interest only periods? I am ony new to this sort of thing..

    Does this mean that at the conclusion of my 10 year interest period, the mortgage payments increase (and only paying principle off), hence larger mortgage payments and no tax deductible interest? Please help, and sorry to be a pain

    Profile photo of chrisb123chrisb123
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    @chrisb123
    Join Date: 2009
    Post Count: 9
    November 6, 2009 - 6:17 am

    Thanks Terry,

    So you generally have Interest Only loans for a term of say 5 years.. What happens at this point when the Loan returns to Principle and Interest? With the Interst Only Loan do i end up paying more over the duration of the loan/does the total loan duration take any longer etc?
    It seems as though there is no real case to ever have a PI loan for an investment property in my case?

    Profile photo of chrisb123chrisb123
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    @chrisb123
    Join Date: 2009
    Post Count: 9
    November 6, 2009 - 2:15 am

    DOES THIS APPLY IN VICTORIA? I have purchased a property (bought land and build house) in Vic using FHOG. Lived in in for 6 months and now about to rent out as an investment property. I have obviously paid stamp duty on the land. What are my stamp duty implications now as i have only lived in it for 6 months???

    Please help…

    Profile photo of chrisb123chrisb123
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    @chrisb123
    Join Date: 2009
    Post Count: 9
    November 4, 2009 - 2:58 am

    I have done the same thing also, and have spoken to the bank about what i am doing and even organised another loan for a new property. The original loan i have taken out for the property stays exactly the same. The only thing that i would suggest is switching your insurance from General Home and Contents to Landlords insurance so that you are insured more accurately for what you are doing with the property.

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