Hello,
I have just read this book 0 – 130 and found it an enjoyable read however it didn’t touch on what i consider to be a VERY important topic. The topic is what type of finance to use to achieve r4esults such as Steve has? After some research and some experiences i am wondering if interest only loans are an ideal way to achieve / fasttrack the road to positive cashflow from investment properties? Is this your preferred option and if so what are the pitfalls of going down this road?
Thanks in advance for your help,
James – Neutral Bay, SydneyIMO interest only is a bit of a waste of time. On a 250,000 loan it saves you around $50 a f/n. May as well make a dent in what you owe.
Speak to a Mortgage Broker, try Terry from Discover Home Loans he is on the website and definately knows his stuff. Not to say that others dont, but he is very good!
Love interest only! I couldn’t are if the banks only offered I.O. loans!!
There are many finance options you can use, for example if you have a high income and own your own home (with a mortgage on it) you can take advantage of a tax loophole to pay your mortgage off while still getting the full benefit of tax deductability.
In the end it depends on your plan??? Buy and Hold, Reno, Wraps, etc.
Rgds.
Lucifer_auHi James,
We recommend to our clients to seek the advice of 4 or 5 mortgage brokers before you make your decision. This will firstly give you an opportunity to see what everyone is offering and secondly it gives you and opportunity to take their formulas and work out the best way to set yourself up. With some properties it may be more beneficial to have a principal and interest loan and others interest only to balance your portfolio. It comes down to researching what the products will do and how they will assist you in what you are trying to do.
Knowledge is leverage.Hunter House Hunters.
Specialising in finding your dream home in Newcastle and the Hunter Valley or your perfect investment property throughout Australia. [email protected]Anibus
on a $250,000 loan at 6.45% over 30 years, IO would save you about $53 per week.
I would say, if you have undeductible debt, then use IO for ivnestments and put the extra off this debt. If not, then it doesn’t really matter that much, but using IO loans means you can afford to service more loans initially.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You must be logged in to reply to this topic. If you don't have an account, you can register here.
