Hi,
I would love to hear your thoughts on paying down the home loan on your PPOR compared to leaving it at around 80% LVR and investing any equity on investment properties. What are the benefits of one over the other. Is there an optimum LVR that you should target on your PPOR or is it best to pay off your PPOR before getting into investing. I know there are some tax implications from a capital gains perspective, negative gearing perspective and also positive cashflow perspective but can't get my head around where or whether there is an optimum position to be in in order to get the best outcome. Also, if your home loan is already at 80% LVR and you don't have the deposit for an investment property, when is it worth considering getting a 95-100% loan and paying mortgage insurance? Do all banks lend that much or is this just a no go zone? Lots of questions that have been going through my brain and would love any thoughts on this topic or links to old threads that may already cover this topic.
Cheers xx
I would love to hear your thoughts on paying down the home loan on your PPOR compared to leaving it at around 80% LVR and investing any equity on investment properties. What are the benefits of one over the other. Is there an optimum LVR that you should target on your PPOR or is it best to pay off your PPOR before getting into investing. I know there are some tax implications from a capital gains perspective, negative gearing perspective and also positive cashflow perspective but can't get my head around where or whether there is an optimum position to be in in order to get the best outcome. Also, if your home loan is already at 80% LVR and you don't have the deposit for an investment property, when is it worth considering getting a 95-100% loan and paying mortgage insurance? Do all banks lend that much or is this just a no go zone? Lots of questions that have been going through my brain and would love any thoughts on this topic or links to old threads that may already cover this topic.
Cheers xx