Rachela replied to the topic Accidental Investor – best loan structure? Pitfalls? Help! in the forum Help Needed! 12 years, 4 months ago
Great advice in this thread – thanks everyone who's taken time to respond. Learned more in 24 hours than ever before in my life!
Rachela replied to the topic Need some clarification with my loan structure in the forum Finance 12 years, 4 months ago
Terry – very clear – thanks for taking the time to explain. Offset it is!
Rachela replied to the topic Need some clarification with my loan structure in the forum Finance 12 years, 4 months ago
Thanks Terry – could you explain why a redraw is different to a offset?Both my bank and my accountant have said they have basically the same effect?It is because a redraw changes the actual interest charged (that is therefore deductible) whereas an offset doesn't? Or is that completely wrong?
Rachela replied to the topic Need some clarification with my loan structure in the forum Finance 12 years, 4 months ago
I am confused about this too and had the same question.My accountant has recommended IO to me for my currently property, soon to become my investment. I understand why – but what I don't understand it, how do you ever pay it off then?I had planned to pay it off so that when I retire it will be an income stream.I have seen advice on here that says…[Read more]
Rachela replied to the topic Accidental Investor – best loan structure? Pitfalls? Help! in the forum Help Needed! 12 years, 4 months ago
Thanks Richard, I appreciate the advice.Yes, I can see that a planned out strategy would be preferable in every way! I am not sure what, if anything, I can do to improve the situation now – I certainly don't want to be signing up to a loan that isn't the best one for my circumstances, so I will ask the Bank if there is another way and explore…[Read more]