Interest Only Loan
by Hassan Raza
I currently own one investment property. I have tenants who pay rent, but I put extra in from my cashflow to meet the montly principal and interest payments.
Since this property is an investment and I am not planning to keep it long term. I was contemplating to change my loan to a interest only loan.
I currently negative gear and reclaim a fair bit in tax, but I am thinking by an interest only loan the rent will cover the payment and at the end I still will receive some income in the bank! Overall objective is capital gain after a few years.
What are your suggestions?