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.
