besides making extra repayments, does any1 hav any creative ways of paying off ur PPoR, if you also have IP as well. One thought if u have enough equity in ur IP to support ur debt, u could take ur PPoR of the loan. Does that work? and the extra interest wouldnt necessarily be tax deductible would it? so u would b in the same situation? a lil confused! a lil help
The extra debt would not be deductible, as the reason for the debt was a PPOR not an investment.
Good idea though, write a book about it and run seminars saying it is the real wealth secret of the rich, and you should be retired by this time next year. Preferably somewhere with no extradition treaty.
Foundation ….just because your parents could afford to send you to primary school ….dosn’t mean you can flaunt it here……
I’ll now go back to my rolled up newspaper in the septic tank and have a good cry…
If you have an PPOR loan and investment properties, it maybe possible for you to borrow to pay the investment loan interest and to pay off your homeloan quicker. See a good accountant, or you could get into trouble with the ATO.
Terryw
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when you mentioned extra repayments were you referring to the actual amount you pay? Because if you are paying monthly you can save heaps by paying weekly as the interest is calculated on a daily basis.
It may seem like you will never pay off the loan but even an extra amount paid into a loan will make a difference over time due to compounding.
You have equity in your IP that you cannot access.
You have PPOR debt that is not deductible.
If you were willing to cop capital gain tax and selling commission and solicitor fees and the cost of buying another investment property ie Borrowing costs, Stamp Duty, Morgage insurance you could pay off more of the PPOR loan and then buy another investment property with a higher debt to equity ratio. But you would probably be negatively geared and may not be affordableComments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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