Hi all,
Just thought I would post to ask what my best option is at present & also perhaps confirm if my current plan is ok...
Situation:
* I own 1 IP at present. Paid: $190000. Currently owe: $95000.
* Paying P&I making double the required repayments.
* Currently have $10000 in a savings account (5%p.a) for using towards purchase costs on a second property when I make the decision.
Questions:
1. Should I keep this savings account or use funds to reduce the $95000 right now?
2. Instead of making double repayments should I pay the funds into my savings account for using on the next IP ensuring the first IP stays - geared?
3. I have a pre-approved loan, valid for 3 months. Do some banks offer approvals for longer durations (ie 6months)?
4. What is an offset account that I hear people mention?
Sorry for so many questions...
Just thought I would post to ask what my best option is at present & also perhaps confirm if my current plan is ok...
Situation:
* I own 1 IP at present. Paid: $190000. Currently owe: $95000.
* Paying P&I making double the required repayments.
* Currently have $10000 in a savings account (5%p.a) for using towards purchase costs on a second property when I make the decision.
Questions:
1. Should I keep this savings account or use funds to reduce the $95000 right now?
2. Instead of making double repayments should I pay the funds into my savings account for using on the next IP ensuring the first IP stays - geared?
3. I have a pre-approved loan, valid for 3 months. Do some banks offer approvals for longer durations (ie 6months)?
4. What is an offset account that I hear people mention?
Sorry for so many questions...