Hello[
] I have recently been to a seminar heavily promoting refinancing to use increased equity, and buying positive cashflow. Could someone please explain how using more equity increases repayments and also leaves you with a positively geared property. thanksGlenn,
I suspect the seminar promoted properties supplied by the folk running the seminar…
Seriously,
If you do go this path I would consider drawing a 20% deposit from your home loan then funding a seperate mortgage on the IP. Both elements will be deductable. Have your PPOR loan split for ease of accounting.
Whether this makes it positive geared is only poss to tell with all the figures. You will need to include alll interest paid against the IP in both loans, as well as other costs. Many of these promoters will also use the non cash deductions such as depreciation to make the end result pos geared.
Other promoters will suggest having a higher deposit to make a property pos geared. I think this is cheating a bit….any property will be pos geared if the deposit is high enough!
Anyway good luck.
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985
] I have recently been to a seminar heavily promoting refinancing to use increased equity, and buying positive cashflow. Could someone please explain how using more equity increases repayments and also leaves you with a positively geared property. thanks
The topic ‘using increased equity, but staying positively gea’ is closed to new replies.
