Investing Your Extra Money

“If you put your money in the bank, you’re probably getting two and a half percent and then you’re paying tax on it. So you’ll probably end up with one and a half percent of your funds as opposed to having an offset account…

In building up the offset, you’re building up your deposit for all your renovation budget for this property…

The other thing is, you pay it down and start paying a little bit of the principal off which a lot of people like doing. We talked about the benefits from an interest rate, it’s not going to have such a big difference to you on such a smaller loan amount.

But you know, it’s money that you don’t get on a longer period of time that you have to save to get to your next property.

So at this lower at these lower price points with a huge amount of yield that you’re getting, often you don’t have the growth potential. And that means that you have to save the equity to buy the next property rather than pull equity out of the property that you’ve got now…”

If you’d like a complementary call to look at the options of different loan types can provide then book a call http://investorschoice.com.au/bookacall

#homeloan #propertyinvestment #mortgagebroker #homereno