Payment Structure

[Brad81]

Hi guys

We have a IP that is currently valued approx 80k below what we paid (dont bother, long story). Anyways, given that it may never produce any CG, should I have the repayments as p & I or should I move to interest only and focus on reducing some other personal loans in the hope that he'll might freeze over and we make some CG on his property in the very long run. Selling this property is not an option as it was our ppor and we intend one day later in life to perhaps return to that property.

Thanks for your thoughts

 

[Propertunity]

IPs should be IO in most cases not P&I. Use the saved cash to reduce non-deductible debt.

 

[Brad81]

I can understand that when you expect CG to take care of the purchase price. I'm not convinced this property will ever reach that point.

 

[Rolf Latham]

I can understand that when you expect CG to take care of the purchase price. I'm not convinced this property will ever reach that point.

do you have a current PPOR ?

ta
rolf

 

[Brad81]

I'm currently in a dha home.

 

[Terry_w]

I can understand that when you expect CG to take care of the purchase price. I'm not convinced this property will ever reach that point.

Is it better to cut your losses now?

 

[Brad81]

I would love nothing more than to cut and run from this one, but my wife is emotionally attached to this one and that's not negotiable so, I'm just going to work around it

 

[MIW]

I would love nothing more than to cut and run from this one, but my wife is emotionally attached to this one and that's not negotiable so, I'm just going to work around it

Tell her home is family (you, her etc... the people), house is an item or a thing!
Perhaps, if you sit down and realise and discuss how much it is costing you and your life, perhaps then you can sell it?
Suzy Orman always says, "People first, then Money, then Things!".

 

[Brad81]

What's the general process in switching to IO.
is it as simple as getting it changed or do I need to go through an approval process.

 

[Brady]

You should be knocking off the personal loan first, it's going to be the highest rate and not tax deductible. Ease of switch will vary pending bank, some will be tick and flick, others will make you jump through some hoops