Debt is bad. That’s is the mentality of most of us that grew up in a typical Australian household. However, there is a distinct difference between good debt and bad debt the reason I bring this up is because I want to highlight that even though property (with good asset selection) is considered good debt, there are still ways that the loan structure can be good and bad.
Now I do need to highlight that I am not a qualified financial planner or accountant but I’ve worked through this with logical reason and crunched the numbers for my own personal situation to provide to you my opinion on how I see Principal & Interest Versus Interest Only Loans.
Every person’s situation is different, there is no such thing as one size fits all so your situation needs to be assessed rigorously to ascertain what the best option is for you and your family.
If you would like to talk to some one about your particular situation, drop us a line and we can have a chat
Tell us a bit about what you’re looking for in property and we’ll get back to you with our expert advice.