Folks,
I am in a quandry.....
Here is the current situation...
In all my wisdom ( or lack of it ) I fixed my Invt loan @ 9.00%. I acknowledge I made a mistake. But now I feel I am missing on IR drop. (Typical human attitude)
I have a few loans with CBA.
265K PPOR fixed @ 6.74 (maturing May 2009)
260K Invt loan fixed @ 9.00 ...ouch..!!! (maturing June 2011)
61K Line of credit variable @ 5.04....
I checked with CBA and they work out breakout costs for 260K Invt loan to be 28K to go on to a variable of 5.04%.
1. Should I cop it on chin and pay 28K and go on to variable @ 5.04 % (or lesser)
2. If I decide to fork out 28K how can I make it tax advantageous ?
3. Are breakout costs tax deductible ?
4. Is it advisable to increase LOC with another 28K instead and pay for above penalties ?
Any other options that you can think of.
This would make a substantial difference in our cash flow. Rental itself would pay for interest component of holding IP.
I am in a quandry.....
Here is the current situation...
In all my wisdom ( or lack of it ) I fixed my Invt loan @ 9.00%. I acknowledge I made a mistake. But now I feel I am missing on IR drop. (Typical human attitude)
I have a few loans with CBA.
265K PPOR fixed @ 6.74 (maturing May 2009)
260K Invt loan fixed @ 9.00 ...ouch..!!! (maturing June 2011)
61K Line of credit variable @ 5.04....
I checked with CBA and they work out breakout costs for 260K Invt loan to be 28K to go on to a variable of 5.04%.
1. Should I cop it on chin and pay 28K and go on to variable @ 5.04 % (or lesser)
2. If I decide to fork out 28K how can I make it tax advantageous ?
3. Are breakout costs tax deductible ?
4. Is it advisable to increase LOC with another 28K instead and pay for above penalties ?
Any other options that you can think of.
This would make a substantial difference in our cash flow. Rental itself would pay for interest component of holding IP.
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