Hello All,
I am reading a book by Anita Bell on Prop Investing. She seems to propogate the idea of paying off PPOR and IP1 before taking on IP2...although I am still yet to figure out how she paid off her PPOR and IP1 in less than 3 yrs..
As i am new to this and have seen that most people who buy IP choose to taken an I/O loan and use negtive gearing + tax ben + CG to their advantage.
And then borrow more against the IP and repeat the process.
The only risk, i see in this is if the bank changes the terms and/or Interest rates skyrocket.
I would like to know how most of you have planned to manage this risk ? Honestly..the reason i ask is coz' I am scared to spread myself too thin (i.e too much 'good' debt in sev properties).
Thanks for your patience & comments.
K
I am reading a book by Anita Bell on Prop Investing. She seems to propogate the idea of paying off PPOR and IP1 before taking on IP2...although I am still yet to figure out how she paid off her PPOR and IP1 in less than 3 yrs..
As i am new to this and have seen that most people who buy IP choose to taken an I/O loan and use negtive gearing + tax ben + CG to their advantage.
And then borrow more against the IP and repeat the process.
The only risk, i see in this is if the bank changes the terms and/or Interest rates skyrocket.
I would like to know how most of you have planned to manage this risk ? Honestly..the reason i ask is coz' I am scared to spread myself too thin (i.e too much 'good' debt in sev properties).
Thanks for your patience & comments.
K