I currently have 2 IP's and am paying P&I on both of them. They are both negetively geered and I can afford the repayments quite compfortably but was wondering if it works out better to swap to interest only. Fees are $300 and $125 to swap them over and I have an offset account on one of these properties. It seems worthwhile using my basic maths but was wondering how its treated when the interest only period ends and I then have to pay a slightly higher Principle repayment again? Is it still worthwhile knowing that in 5 years time I have to increase payments? Cheers.
Paying fees to swap to Interest Only?
- Thread starter Speed_D3mon
- Start date
Hiya SD
The increased cashflow may be very handy if you still have a PPOR debt to pay off,or you want to buy another investment property
More importantly, if want to buy a new PPOR at a later date, it doesnt make sense to pay Principal on an IP now. Get IO and 100 % offset and park all extra repayments into the offset
ta
rolf
The increased cashflow may be very handy if you still have a PPOR debt to pay off,or you want to buy another investment property
More importantly, if want to buy a new PPOR at a later date, it doesnt make sense to pay Principal on an IP now. Get IO and 100 % offset and park all extra repayments into the offset
ta
rolf
The bank did say they would review it again when the 5 year term is up. Was just wanting to make sure that the extra cashflow now wouldn't put me behind further down the track. I don't have PPOR at the moment but am looking to get one in the next couple months. May as put the extra doshy aside for this i guess! Thanks. =)
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