Australia's largest stock trading and investment forum Australia's #1 stock forum

I use the same. IO with offset. Once the offset eventually...

First 209 Last

Share
Profile

Follow
mad_doggy911

660 Posts.

19

11/09/18

20:18

Post #: 35532245
Share

Originally posted by nosirommit ↑

Interest only loans loans with an offset are by far the most efficient loan for anyone with financial responsibility.

I have always run IO loans even for my PPOR. Every cent my wife and I earn goes into the offset anyway, so we are effectively paying P&I with a high level of additional payments. It builds up a substantial cash stash to use in the case of any significant fall in either the property or share markets.
Since the new regulations we have changed to P&I purely because the IO rate was going up. This reduces our cash stash a little but is worth the reduced interest payments.

I am not a genius, so I am sure I am not the only one who used/uses this method. Not rocket science.

IO for anyone without financial responsibility is a dangerous game, but used wisely it is not the devil that the media makes it out to be.

Expand

I use the same. IO with offset. Once the offset eventually reaches the loan amount I have the freedom to clear the debt or just continue building up the offset account and potentially buy another property or invest in something else depending on the deal and market conditions.
1 Upvote

Reply

There are more pages in this discussion • 4,092 more messages in this thread...

First 209 Last