Found a casflow positive property- need opinions

[Millions]

Hawk,

Can you be sure that you will never have non-deductible debt again?

If you keep the loan interest only and put whatever your principal payments would have been into an offset account then you can preserve the deductibility of the investment property loan and take the money out later when you upgrade your PPOR or acquire something else non-deductible.

This option requires that you have good discipline though as some people are tempted to spend the available funds sitting in the offset account.

 

[AlmostBob]

In every area and situation, there is a property that is an absolute steal, and an absolute dog
often they are the same property, just different perspective purchasers
the final outcome depends on your circumstances

but 0cg with 10% cf may not be enough
If the numbers do add up, go
fortunate enough to be getting cf and cg, P&I loans, and a much lower CGtax at sale

 

[Hungry Hawk]

Hawk,

Can you be sure that you will never have non-deductible debt again?

If you keep the loan interest only and put whatever your principal payments would have been into an offset account then you can preserve the deductibility of the investment property loan and take the money out later when you upgrade your PPOR or acquire something else non-deductible.

This option requires that you have good discipline though as some people are tempted to spend the available funds sitting in the offset account.

Thanks Millions. I can't see us changing our PPOR any time soon, but renos could be part of the equation I guess. I'm comfortable with growing debt levels provided it's good debt. We are focussing on positive cashflow IP so the deductibility of interest was less of a motivation . I suppose my thought process was that the debt will need to be repaid at some point in the future, so why not now, if the cashflow is not an issue?

 

[Peterw]

If you ensure that the loan has redraw facility if you need it, then that should cover you.