“I like the idea of locking in equity positions ... I put, pay the loan back in to redraw, so that the balance is like $50, leave it on interest only.”
SW
Stuart Weems personal practice
Investopoly ·
Stuart Weems · Investopoly · Q&A- Sequence of returns risk retiring early: bridging to super
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Revalue property, lock in equity with an interest-only loan, and reset the interest-only term after five years to secure a decade of access
“I like the idea of locking in equity positions ... I put, pay the loan back in to redraw, so that the balance is like $50, leave it on interest only.”
“If the rates are up 50%, we'll go interest only for five years. And basically hope in five years when the loan expires, rates will be back”
“I just got an unconditional approval for a loan and signed loan docs on Saturday. It's a $6.5 million loan and it was split into two portions, one at 6.14% interest only investment and one at 6.34%. So we guarantee our rates at 6.1%.”
“Someone who chooses interest-only on the investment split usually maximises the deductible interest and directs all surplus… towards a non-deductible home loan”
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