P&I vs IO loans

Discussion in 'Investment Strategy' started by rvitasek, 14th Nov, 2019.

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  1. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    P&I. It's a lot cheaper in the long run.

    Does this mean you're anticipating 2% pa growth? If it were me, I'd find a way buy elsewhere, even if it meant continuing to rent locally.
     
    Peter_Tersteeg, 15th Nov, 2019
    #21
  2. rvitasek

    rvitasek Member

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    I did not include capital growth in my calculations. The time should certainly reduce with capital growth but that applies to both P&I and IO so I excluded that for simple comparison between the two loans.

    The property will be purchased for high capital growth so certainly aiming higher than 2% pa.
     
    rvitasek, 15th Nov, 2019
    #22
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