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  • Profile photo of risk1return2011risk1return2011
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    @risk1return2011
    Join Date: 2011
    Post Count: 3
    May 19, 2011 - 3:56 am

    Maybe the biggest thing to get my head around is always having huge amounts of debt and never really owning anything .
    Is it that simple??
    Let the tax man and the tenant pay the bills.

    Thanks for your thoughts

    Cheers

    Profile photo of risk1return2011risk1return2011
    Member
    @risk1return2011
    Join Date: 2011
    Post Count: 3
    May 19, 2011 - 3:38 am

    Thanks Jamie

    But if our goal is to buy and hold a IP for the long term with a IO and you switch back to IO , when the term of the loan expires ( 30 yrs say ) what happens then ??? You still owe the bank . Do you have to sell and buy another ?
     Forgive me if my questions are silly but trying to understand.

    Cheers

    Profile photo of risk1return2011risk1return2011
    Member
    @risk1return2011
    Join Date: 2011
    Post Count: 3
    May 19, 2011 - 3:12 am

    Hi All,

    I'm a novice like many on this forum, and WOW getting my head around some of this stuff is doing me in. But at the same time so helpful.

    A question on IO , I was looking at a couple of the banking website calculators and after the IO  repayment ends ( in this case 10yrs ) the repayment seemed to increase ??? . I feel like I'm missing something . Because you seem to pay the interest off  every mth and the priniciple stays the same ( lets say a  $ 300,000 ) but once that ends where do you find the extra $ to pay down principle and interest now.
    Please someone explain what i'm not getting.

    We have a IP that we purchases 12mth ago ,and really keen to buy another IP and also want to get into bigger PPOR 2 and rent out PPOR 1. So really need to understand this better. Would really appreciate your input.

    Cheers

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