Interest Only Loans

Interest only loans are great for the investor for a number of reasons. Whilst you never pay the debt off, the loan enables you to claim 100% of the interest payments and costs associated with the loan.

It allows the investor to:

• Maximise their cash flow by freeing up cash otherwise spent on reducing the principal amount of the loan.
  
  
• Keeps your tax claim simple by being able to reduce your taxable income by the full amount of payments and fees related to the loan.
  
  
• Allowing the extra cash flow to be redirected to another investment property sooner.

You must remember wealth and independence attained through investing in property is in the main created by Capital Growth and not Positive Gearing.