Newbie: Principal and Interest loans??

[The Y-man]

Or is the plan to buy now IP and sell few years later, hope some capital growth and use the profit to pay off the original loan and reduce the loan in other IPs?

That's what we did .... (not just reduce the loan on the other ip's - you can elininate them altogether)

The Y-man

 

[Perth Investor]

It takes so much effort to convince the bank to give you money, why would you want to give it back???

 

[Dean2012ad]

It takes so much effort to convince the bank to give you money, why would you want to give it back???

Exactly.

Although some people like to build stable equity by paying off their loan using principal payments.

Equity in investment properties is great, especially if you've got alot of income to build it, however if there is a non-deductible debt such as a PPOR that should be the priority, and an IO loan frees up extra money to reduce that debt.

Having the lifestyle you want, and to be able to go on holidays is also important...

 

[alexlee]

Equity in investment properties is great, especially if you've got alot of income to build it, however if there is a non-deductible debt such as a PPOR that should be the priority, and an IO loan frees up extra money to reduce that debt.

Offset money is even better.