need some advise

Hi,

My current home loan is a Principal and Interest loan. From the principal of the loan, I have paid off half of the home loan already. I would like to restructure my current loan facility from P & I to ” Line of Credit ” to free up substantial cash flow so, I could serve it elsewhere and create savings for the household at the same time. This way, my home loan will be reduced significantly and quickly by simply doing this ( Is this correct ? ) If so, could you recommend me a bank / broker where you have dealt with them before and you were happy with them, where they could offer me a good interest rates ? I am currently with Resi.

My understanding of the ” Line of Credit ” loan is that if for example you have a $ 50k ( Line of Credit ) loan you will only be paying interest on this amount or less if you could pay off half of the $50K say as an example its now 25K, you will only be paying interest on $25K not on the original $50k loan. Is this correct ?? As for, if the $50K was a ( P & I ) loan, than if you still pay off half of the $50k so it is now $ 25K, the interest you will be paying still will be based on $50K principal not on the current $25K ?? Is this correct?

Also, I am planning to buy an investment property and everyone these days are talking about ” Interest Only ” loans. To me, when you get an Interest Only home loans for your investment property, you will not eventually own the property because all you are paying is the interest and are not reducing the principal. Of course you will be getting some Tax benefits, until you are employed, but what about when you are not employed and you still need to pay the interest payments for your mortgage ? I personally do not feel comfortable with Interest Only loans. I would eventually like to own the property in the long term after I negatively geared the property and while I am employed I could get some of those taxes back from ATO through my pay checks every month. I do not like the idea of just only paying ” Interest Only Loans ” until I am retired ?? Which loan is suitable for my situation and why ?

1- ” Line of Credit ” 2- Principal & Interest 3- Interest Only.

Also, what about investing into buying a shop where you rent it out to a business and you get the rent to pay off the shop’s mortgage ? I have been told that you get a better return from a commercial shops than residential houses ? What do you think / suggest ? How do I have to go about this ?

Do you know of or have you dealt with this investment company called ” Landmark Investments Australia ” before ?? They are located in Sydney. If you have, what was your experience with them ?

If you could advise me on above questions, I would appreciate your help.

Thank you
Noosa