Interest-only investing in a booming market
Some savvy investors buy a property in a booming market and then hold onto it for just a few years. While the property grows in value, they just pay off the loan interest and use it to reduce their tax bill. They also earn rent, which they might put into an offset account or save elsewhere.
But they never repay the loan. Instead, they stick with interest-only repayments and then sell the property for a higher price.
This doesn't work when property prices aren't growing fast and is obviously a pretty risky investment strategy.
If I have an interest only fixed rate loan and make a manual payment into it, will my next interest payment factor in this manual payment?
Ie. Say in month one my IO payment is approx $800
In month four I make a manual payment of $500. Will my next IO payment be approx $300 or approx $800?
Hi Claire,
Thanks for your enquiry.
As finder.com.au is an online comparison service, we cannot comment on the value of your interest-only payments.
It would be best to contact your lender directly.
Thanks,
Belinda
looking for an int only off set loan a/c, refinance amount 310000
Reply
Hi Sandy,
Thanks for the question.
We have compiled some interest-only home loans with offset accounts. You may compare the loans on this page and contact a lender directly to find out more about a loan or to start an application.
I recommend getting in touch with a licensed mortgage broker. A broker can help you understand your financial position and they can leverage their panel of networks to find a lender that is more inclined to review your application.
Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you.
I hope this helps,
Marc
looking for an int only off set loan a/c, refinance amount 310000
Hi Sandy,
Thanks for your question.
Please see this page for a comparison of interest-only home loans with an offset account. Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you.
I also recommend getting in touch with a licensed mortgage broker. A broker can help you understand your financial position and they can leverage their panel of networks to find a lender that is more inclined to review your application.
Cheers,
Shirley
I have 150,000 and would like to purchase land and build a home in an area near shops and train near where I live now.
I have 10,000 on my home loan that i will pay off. I gross 1997.69 per fortnight and have no other loans. The home that I now live I will be selling in around five or six years as I am 59 and will retire. My property is worth around one million or more and would like a interest only loan with options such as, to pay more off the loan, and redraw function. I do not wont my home as Collateral. Regards Julie.
Hi Julie,
thanks for the question.
One option you have is to compare home loans on this page and if you’re interested in any of them click the ‘Go to Site’ button to speak to a lender and find out more. You can also contact a mortgage broker if you’d like advice and help to obtain a home loan by clicking the ‘speak to a mortgage broker’ button in the table above.
I hope this helps,
Marc.
have seen a place that i like but haven’t sold mine as yet I own my home and want to know if itis a viable option to borrow on the new house and pay a interest only until my property has been sold.
Hi,
Thanks for the question.
Whether or not you will be able to do this will depend on the lender you apply with, as each has its own unique lending criteria. You might want to check out the different bridging home loans as these can be used to pay for one property while waiting for another to sell.
I also recommend getting in touch with a licensed mortgage broker. A broker can help you understand your financial position and they can leverage their panel of networks to find a lender that is more inclined to review your application.
I hope this helps,
Marc