Thanks a lot Benny, I totally understand now! so using your example above, If I were to just have a principle and interest loan and no offset account and had dumped the $100,000 to my repayments nothing would change, my repayments would still be $2000 per month the only thing would change would be the loan term reduced in years, is this correct?…[Read more]

Could you give me an example of this Corey? Cheers mate

Hey Jamie,

At this stage I don’t have any loan, but just above I was referring to interest only loan as the guys mentioned that above.

Thanks

Hi Corey,

Oh wow that is great news. So if I somehow acquired $480,000 loan balance amount and put it into the offset would that mean I would pay zero repayments? Am I somehow on the right track haha how come not many people know about this, most people I talk to just tell me principle and interest so that way you can pay off some of your home,…[Read more]

Hi Benny,

Thanks for your reply, oh WOW so are you saying Benny using my example above, If I dumped $100k into my offset account My repayments would be reduced from $2200 monthly? If I did not have a offset account and just payed the $100k to my loan would I just be paying the same repayments of $2200? I hope along the lines somewhere this is…[Read more]

Hi Guys

I think I am beginning to understand so using a similar example if my property is 600k and I have 300k paid off and the banks will lend me 100% LVR than I will have access to the whole 300K to invest in another property? if the bank will only lend me 80% (600,000/0.8= 480,000) 480,000 – 300,000 = $180,000 equity? Is this correct?

Thanks guys

Hi Guys

Wow thanks for the information guys and thanks Benny for the other info it help me understand why not just paying off your mortgage for 30 years was the best option, I think I am getting there but still a little confused, so using the same example above if my property is $600,000 and I have $120,000 equity. I than want to buy an…[Read more]

Hi Benny thanks for your reply, If the property purchased had a great capital growth over time and you are using interest only loan , I can understand in the future you can sell for a lump sum as the property has risen in value while claiming tax deductible on the loan, but what if you purchased a property that has a very low capital growth or…[Read more]

Hi I know this is an old post but I enjoy reading it and wanted to ask if jwareham1985 converts his loan to interest only loan and rents it out as an IP how will he ever get to pay the loan off?

Thanks for the link Benny wow there was so much information that I didnt know. If I was to buy a property with my partner and for example we earned $50,000 each and we were negatively geared $5000. At the end of tax year how would that calculate that ? Would we be treated taxable income together since the property is under both names eg 50k + 50k…[Read more]

Haha yes I will ask him next time Benny. I did however ask him if I did buy this could I resell this for more after completion and than his answer was property always goes up and you should keep this longer so you can negative gear for tax purposes and claim depreciation etcc ….

Thanks for the reply guys, To be honest I don’t know much about property investing, just read an article on the train one time about brief explanation on positive gearing and negative gearing. The sales guy was well dressed and fancy so I thought he might of actually been right, because coming from a kitchen background I serious don’t have much…[Read more]

One more question how do people come up with the capital growth calculations just for example melbourne cbd has a capital growth 5.0% anually (just making it up for an example)