Hi all
I'm still new to this game and I would greatly appreciate any advice you great people can offer me I'm about 4 weeks away from settlement but I'm still a little confused as to how best to pay off this purchase.
To summarise (figures are rough);
I have put down $150k as a deposit on a $350k apartment. I have the income to pay it off entirely in 5 years provided that I rent it out and I live with my parents for a few extra years (I'm still relatively young).
Is it wise to pay off an apartment so quickly? I ask because I rarely see it done. I only ever see people going for IO loans and such which makes me curious. I know it frees up cash for investments, but what other things am I missing? Paying off an apartment ASAP would mean less interest though.
My thinking is, I could own this place in 5 years time and buy another place and pay that off in another 5 years or so. Is there something inherently wrong with this plan that I'm clearly missing?? :O
Long story short, I'm very confused as how much I should be paying the bank back! Please provide some insight
Thanks!
I'm still new to this game and I would greatly appreciate any advice you great people can offer me I'm about 4 weeks away from settlement but I'm still a little confused as to how best to pay off this purchase.
To summarise (figures are rough);
I have put down $150k as a deposit on a $350k apartment. I have the income to pay it off entirely in 5 years provided that I rent it out and I live with my parents for a few extra years (I'm still relatively young).
Is it wise to pay off an apartment so quickly? I ask because I rarely see it done. I only ever see people going for IO loans and such which makes me curious. I know it frees up cash for investments, but what other things am I missing? Paying off an apartment ASAP would mean less interest though.
My thinking is, I could own this place in 5 years time and buy another place and pay that off in another 5 years or so. Is there something inherently wrong with this plan that I'm clearly missing?? :O
Long story short, I'm very confused as how much I should be paying the bank back! Please provide some insight
Thanks!