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  • Profile photo of hennyhenny
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    @henny
    Join Date: 2009
    Post Count: 3
    March 15, 2009 - 11:48 pm

    Thanks Elka – that is roughly what I came up with.  There used to be a handy calc on http://www.realestate.com.au that I was using, but they have changed them and the functionality is a little different now.

    Thanks SHales, I'm totally confused when it comes to compound interest, other than to increase the value of something, so when applying it to paying off a loan I'm a bit lost.  Maths isn't my forte, I'm afraid – hence this post :)

    Profile photo of hennyhenny
    Member
    @henny
    Join Date: 2009
    Post Count: 3
    March 15, 2009 - 12:39 am

    Okay, we have the option to pay MORE then the minimum repayments (without any fee) as our loan is interest only.  We currently ensure we pay at least the equivalent of P+I on it anyway.

    I just want to figure out, given that the loan amount is slowly going down (that is, we have built up redraw in the account), at what point the rent will cover the repayments  and other costs on the remaining time for the loan…at which point, we won't have to pay anything into the place, and it will pay for itself.

    Maybe that is not 'positive gearing' but neutral gearing?  Sorry if I used the wrong term :)

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