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From: Ian Redman
Hi All,
Could somebody please try to explain to me how having an IO loan or P&I loan works for the length of the loan?.
Im sorry the question is very vague, so maybe i'll explain where im coming from and maybe that will help!!!
My fiance and I do not have our own home and we have purchased our first IP which we are due to settle on 22 Jan '02. We have gone with RAMS and have a revolving line of credit type loan. We were under the impression that this would give us equity faster to purchase another one.
After a very brief discussion on the chat room yesterday, it appears that this is not the best type of loan because we will be paying it off with the tenants rent and our own money!!!. In effect we are just saving for our retirement!!!.
The advise that came from the brief chat was to go for an IO loan from one of the major lenders and save our money to purchase the next property, maybe using an offset mortgage with a redraw facility.
As I explained earlier we are due to settle in Jan '02 and Im affraid that we are going down the wrong road.
Could somebody explain and try to point us in the right direction so we don't start off on the wrong foot.
Thanks in Advance
Ian Redman
Hi All,
Could somebody please try to explain to me how having an IO loan or P&I loan works for the length of the loan?.
Im sorry the question is very vague, so maybe i'll explain where im coming from and maybe that will help!!!
My fiance and I do not have our own home and we have purchased our first IP which we are due to settle on 22 Jan '02. We have gone with RAMS and have a revolving line of credit type loan. We were under the impression that this would give us equity faster to purchase another one.
After a very brief discussion on the chat room yesterday, it appears that this is not the best type of loan because we will be paying it off with the tenants rent and our own money!!!. In effect we are just saving for our retirement!!!.
The advise that came from the brief chat was to go for an IO loan from one of the major lenders and save our money to purchase the next property, maybe using an offset mortgage with a redraw facility.
As I explained earlier we are due to settle in Jan '02 and Im affraid that we are going down the wrong road.
Could somebody explain and try to point us in the right direction so we don't start off on the wrong foot.
Thanks in Advance
Ian Redman
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