first time investor wanting to knnow is there any other way to gain more cash flow apart from reducing loan repayments to interest only? and by doing this does it acualy pay anything off the loan amount?
And also is it a good i dea to keep on using equity to continue to purchase IP’s?thanx adam
They only way to improve cash flow is to reduce expenses and/or to increase rents while making sure that you claim every tax deduction you are entitled to.
Having an IO loan does not reduce the balance as you will be paying interest only. This is still a good idea, especially if you have a non deductible debt as you would be wanting to pay that debt down faster.
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
Adam
Apart from Terry’s comments, the only other way to increase cashflow is to make improvements to the property to gain more rent.
I think that using equity to fund further purchases is a great way to go and allows you to exponentially increasing your asset base in a way that saving does not.
Regards
Megan
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