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From: Ray .
Whilst browsing thru the archives I noticed a no
of posters who purchased 3-4 IPs using a loc for
deposits. I havent seen a posting that
emphasises that the loc comes at a cost of
interest that must be serviced on a regular basis
otherwise --Kaboom! For arguments sake, if a
person has a mortgage of $150000 on a
$300000 property then their equity is $150000 of
which you can borrow 80% as I understand it.
Assume this equity is used to buy 3 properties
using 60000 equity with I.O. loans. This person
either self-employed or Payg now must service his
mortgage and loc loans, assuming that he/she is
able to have neutrally or positively geared IPs.
There appears to be no concern in postings
placed on servicing loc debt. Maybe I have
missed something here and are wasting
everybodies time. My miserable excuse is that I
am new to this valuable forum and come armed
with inexperience and ignorance. I would really
value comments from other posters.
Whilst browsing thru the archives I noticed a no
of posters who purchased 3-4 IPs using a loc for
deposits. I havent seen a posting that
emphasises that the loc comes at a cost of
interest that must be serviced on a regular basis
otherwise --Kaboom! For arguments sake, if a
person has a mortgage of $150000 on a
$300000 property then their equity is $150000 of
which you can borrow 80% as I understand it.
Assume this equity is used to buy 3 properties
using 60000 equity with I.O. loans. This person
either self-employed or Payg now must service his
mortgage and loc loans, assuming that he/she is
able to have neutrally or positively geared IPs.
There appears to be no concern in postings
placed on servicing loc debt. Maybe I have
missed something here and are wasting
everybodies time. My miserable excuse is that I
am new to this valuable forum and come armed
with inexperience and ignorance. I would really
value comments from other posters.
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