Hi guys.
Sorry if this is in the wrong section and a bit of a noob question, or has been talked about before (my search function hasnt been working for the past few days).
Ive heard people talk about interest only loans, and how instead of paying off your borrowings, you are only paying off the interest on the loan.
Would these apply to investment properties (if they do even exist)?
The reason this popped into my head, is with investment properties, the aim leans more towards increasing assets, as opposed to decreasing debts when it comes owning your own home.
Is this something people use, or have looked into, as it would make it easier to get neutrally/positively geared products, and enabling more IP buys?
I just see it as id rather have 4 properties, with 1 million in debt where neutral gearing enables me to maintain lifestyle, future investments etc, where in 3 yrs it may be worth 1.4 million, as opposed to owning 2 properties, and due to negative gearing, opportunities for future investments are slimmer.
Thanks for any help clearing this up for me, sorry it its confused some of you haha.
Nick
Sorry if this is in the wrong section and a bit of a noob question, or has been talked about before (my search function hasnt been working for the past few days).
Ive heard people talk about interest only loans, and how instead of paying off your borrowings, you are only paying off the interest on the loan.
Would these apply to investment properties (if they do even exist)?
The reason this popped into my head, is with investment properties, the aim leans more towards increasing assets, as opposed to decreasing debts when it comes owning your own home.
Is this something people use, or have looked into, as it would make it easier to get neutrally/positively geared products, and enabling more IP buys?
I just see it as id rather have 4 properties, with 1 million in debt where neutral gearing enables me to maintain lifestyle, future investments etc, where in 3 yrs it may be worth 1.4 million, as opposed to owning 2 properties, and due to negative gearing, opportunities for future investments are slimmer.
Thanks for any help clearing this up for me, sorry it its confused some of you haha.
Nick