Hi,
Pls help new starter, I need advise.
Just purchased my very first property,
Plan to stay for 6 months for FHOG then convert this to an IP.
Currently on high bracket tax income. Planning to buy PPOR in soo many years in future (unsure when i would be able to afford one).
Any idea which loan would be the best for me?
Currently comparing between choosing IO loan and P&I loan (repayment only different about $17 per week).
My broker suggests to have P&I loan as the different is not much.
But as I read this forum, most people say better to choose IO and claim tax against it. Anyone could help with this?
And also.. which one to choose ?
Give 5% deposit, and pay LMI (about $4500)
Or 10% deposit and pay LMI (about $2400).
Would I be better off choosing IO and give minimum deposit (5%) so that I can claim more expenses?
PS: I am completely new to this investing.
What is equity exactly?
Is it the money paid back to the loan (principal) or the increase property value over years?
Would I still be able to borrow against equity if it increases (if i choose IO loan)?
Thank you.
Any advise would be much appreciated.
Pls help new starter, I need advise.
Just purchased my very first property,
Plan to stay for 6 months for FHOG then convert this to an IP.
Currently on high bracket tax income. Planning to buy PPOR in soo many years in future (unsure when i would be able to afford one).
Any idea which loan would be the best for me?
Currently comparing between choosing IO loan and P&I loan (repayment only different about $17 per week).
My broker suggests to have P&I loan as the different is not much.
But as I read this forum, most people say better to choose IO and claim tax against it. Anyone could help with this?
And also.. which one to choose ?
Give 5% deposit, and pay LMI (about $4500)
Or 10% deposit and pay LMI (about $2400).
Would I be better off choosing IO and give minimum deposit (5%) so that I can claim more expenses?
PS: I am completely new to this investing.
What is equity exactly?
Is it the money paid back to the loan (principal) or the increase property value over years?
Would I still be able to borrow against equity if it increases (if i choose IO loan)?
Thank you.
Any advise would be much appreciated.
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