Hi GCP

Have you got a LOC as the only loan for the IP? An IO loan would do the same thing and will be 0.1% cheaper.

From a tax perspective, the interest on the IO or LOC loans would both be deductible – they are both securing an investment property.

Cheers

Jamie

Or you could just stay at home and mooch off the folks while you save a big deposit. A partner with similar ambitions can also be of a tremendous help – doubles the savings, halves the waiting time.

Cheers

Jamie

Not quite – it's a flat white "coffee"

Cheers

Jamie

No Jack – I would much prefer to buy into a market that's reached it's peak.

Move on Jack – it's getting old.

There's nothing wrong with having a different viewpoint – but I think you'd agree that the way you go about it is wrong.

Cheers

Jamie

As Derek said above:Interest on investment debt is tax deductible

So as you're paying down the principle on this loan – you're effectively reducing the amount of interest you can claim (because the loan amount is getting smaller with each repayment).

Because you have a non-deductible debt (your family home) you're better off paying down the debt on this first and then move onto paying down your investment loan.

Cheers

Jamie

Hi Henry

There's an example on our blog – http://www.passgo.com.au/blog/25-the-project/67-how-to-use-the-equity-in-your-home-to-purchase-an-investment-property

Cheers

Jamie

Hi Veseli

With all due respect – that comment just makes no sense. In a previous post you said "Buy cheapest house in the best area, and spend at least 50k and you will make 100k back."

I think if any comments are going to place anyone in financial hardship, it's comments like those.

This is an open forum, with people offering varying opinions. What works for one person might not work for the next and vice versa. We can only offer opinions based on our experiences. You've had a great experience via expensive renovations whereby others have had a great experience with more affordable renovations. Neither is right or wrong – just different ways of adding value to a property. It's up to the OP to decide which way is more suitable to his/her needs.

Cheers

Jamie

I agree with Michael – the question comes down to your own individual risk profile and what you're comfortable with.

I can understand the motive behind wanting to pay off both debt as soon as possible – but you really should consider paying off your PPOR before reducing the debt on your investments. This will save you money.

Cheers

Jamie

Depends on the value and location of the property. There are certain properties where an affordable flat-pack will suffice and there are others where a more expensive kitchen would be better suited.

Cheers

Jamie

This has been my experience. We recently rented out a property to a young couple. During the first inspection, it became apparent that there were quite a few 'students' living in the property. Within one month of signing the lease – the place was…..well, not in the condition it was rented out to them in.

One of the joys of self managing Needless to say, there are no students occupying the property now.

Cheers

Jamie