Hi there, I have just finished reading Steve’s books and on the hunt for property. I have never taken out a home/commercial loan before but was wondering if one’s first loan can be an interest-only loan (whether it’s a possibility) as well as whether it’s a good idea or steer clear until I’ve bought my first property?
Any advice would be much appreciated.I dont think you can ever purchase your first property too early and myself and many of my clients purchased an investment property prior to purchasing a residential home to live in.
The buying criteria for each are totally different and need to be treated as such when undergoing your due diligence.
As for a loan structure i would suggest that you certainly look to establish any investment loan on an interest only basis and probably until such time as you have a non tax deductible debt on your own property consider attaching a 100% offset account to the loan.
Your decision as to what to do with the property may change as time goes by and therefore the ability to be flexible and not tie up large sums of money in deposits or increased monthly repayments by reducing the principal makes sense.
Cheers
Richard Taylor
Residential & Commercial Finance Broker
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Thanks for your response. I’ll aim for an interest only loan option after due diligence.
I concur with Richard……..
You must structure the funding to suit your own individual circumstances, and you can bet that your situation is different to everyone else here…..
Interest Only allows you to avail of applicable tax advantages, minimise the loan repayment burden, and allows you to take advantage of growth.
Make sure you talk to an experienced lender / broker when you are ready to purchase. They will discuss your situation, and together you will arrive at a product/structure that is right for you.Wade Greasley
Bluewater Financial Pty Limited
Mo- 0414 564743
[email protected]
“Discover the Bluewater Difference”[biggrin]Yes these guys are right.
Interes only is a good idei for investment purposes and deffinately better then renting.
I am also in a search of a good lender. Had a look around gained a lot of knowledge about mortgage industry and some lenders.
A proper finance and taxation advice is not a last thing you need to consider before going to mortgage broker
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