How should I structure my portfolio and loan

Hi Guys,

I have previously purchased and sold a property a few years ago and made some nice cash out of it as I seen potential in the place and then went onto to study. Now 24 and finished university. I am looking to get back into the game. My goal is a follows:

I want my property purchase to be an investment property. It will be most likely a buy and hold situation (due to my circumstances), but with subdivision or small renovation potential in the future. I do not have a PPOR anymore and I want to continue renting as then I can live in an area I am currently in. As opposed to purchasing and moving.

Therefore, how do I structure the loan Interest Only or Interest and Principal?

My thought is to go interest only. As I cannot claim the principal portion as a tax deduction. However, I’d like to make the equivalent to Principal and Interest payments. Is this something I should do? As the principal portion I would put it into savings for another deposit for another investment property or do I use the money to pay down my HECS debt of $30,000? *I want to build a substantial portfolio not just have 2 or 3 properties. I want to use it as an income source and I want to structure it correctly now so it doesn’t become a headache in the future and restrict my borrowing power.

Is it worth me having an Off – Set Account if I do not have a PPOR? I have not entirely got my head around these. (Please fill me in if you can, that would be much appreciated)

Lastly, do I purchase properties in my name or do I purchase them within a company or trust? What works best?

Cheers,

Jono

• This topic was modified 8 years, 9 months ago by  Jonathan.
• This topic was modified 8 years, 9 months ago by  Jonathan.
• This topic was modified 8 years, 9 months ago by  Jonathan.