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C and I with an offset are the best option for the time being. I...

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kenalex

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09/02/18

10:31

Post #: 30938929
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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.

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C and I with an offset are the best option for the time being.
I would also maximize the borrowing from the bank and put it in the offset to beef up capital.
And if you lose your job and deplete the offset as a result, it will be time to offload some assets.
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