Other than Interest Only, what is the most favourable loan structure to have (i.e. table, reducing etc.). Also, when calculating the sale price or salvage value of an investment, say in 10 years, should I use the Present Value of the sale?
I probably dont make sense, but if anyone can understand me, please help.
Curt
Hi curtly,
Basic variable principal & interest is probably the most common loan I come across for non-prop investors. Most property investors want portion fixed or variable with an off-set account to park spare cash that reduces repayments, plus a portion LOC which can be redrawn when needed eg to buy another IP.
Re sale price – location, location, location, but could maybe assume CPI as minimum, double in price every 8 years as maximum I suppose.
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Mel
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