What is the best way to structure cash positive investment loans -
interest only line of credit, interest only fixed?
Q.
What is the best way to structure cash positive investment loans
- interest only line of credit, interest only fixed? Do I pay off
the investment properties one by one? What name is best to put the
investment properties in - own name, a business name or a trust
name?
A.
There are two schools of thought. One option is to use interest
only to maximise the amount of cash you have available to invest
elsewhere; the other is to use P&I so the debt reduces and the
equity in the properties build up. Your Adviser will be able to
guide you and is also the person to suggest what name the
properties should be in.
Each week financial advisor Noel Whittaker answers your
questions.
