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How to get the biggest ROI on an investment property

How to get the biggest ROI on an investment property

When purchasing an investment property, there are a number of factors that could increase or reduce your potential return on investment. In this case it’s not just location, location, location.

When considering a property for investment purposes, the most important question to ask is ‘will be attractive to tenants?’. But how do you know what will appeal to someone you’ve never met? Settling on a handful of locations is a good start. “Young families and couples are the ones that drive capital growth and so a location that is within a reasonable distance to schools, entertainment, transport, and an employment hub is one to look out for,” says an MFAA Mortgage and Finance Broker. Other ideal factors are a low vacancy rate and relatively high rental yield.

Although location plays a major role, it’s by no means the only defining factor. “There is a mistruth a lot of people subscribe to when selling investment properties, which is to disregard the quality because you don’t have to live in it,” advises another broker. “You have to buy a homeowner quality property, because someone has to live in it,” the broker says. “And when buying an investment property, you have to have an exit strategy, which will generally involve selling to homeowners as well as investors.”

To get the most value, you need to think about the demographic of renters who are likely to be living in the area. “You have to match the property with the area,” says the broker. “If you put a good quality, decent sized, one bedroom apartment in the inner city, it would be a great investment, however if you put it 30km out, it wouldn’t garner as much interest.”

When investing in any kind of property, be wary of any danger signs. One of the biggest mistakes Australians make is not knowing what their cash flow is. “Bad cash flow is worse than paying too much for the property,” advises the broker. “It is vital to know how much your chosen property is going to cost after tax, every week after you settle. There’s no point in buying a top quality property if it’s going to send you broke.”

When looking to purchase an investment property, ensure the expert you are dealing with is actually an expert. “Everyone has an opinion on property,” says the broker. Your broker will be able to connect you with trusted professionals in their own network. “You always have to be wary of somebody who tells you that their way is the only way to invest,” advises the MFAA broker. “Only buying for cash flow is flawed, only buying for capital growth is flawed too. You have to buy property that’s going to work for you.”

As well as speaking to a real estate expert, you can speak to us to get our insight on the market.

Source: MFAA

Reproduced with the permission of the Mortgage and Finance Association of Australia (MFAA)

This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Past performance is not a reliable guide to future returns.

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author.

Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

Using tax for effective property investing

Using tax for effective property investing

With Australian property remaining expensive and banks tightening their lending criteria, investors need to ensure their property investments are a financial success.

A key element is maximising the taxation benefits flowing from your investment. This includes correctly structuring the loan and ensuring your deduction claims don’t fall foul of the tax man.

Getting the structure right

As with any investment, having the correct ownership structure for a property asset is vital and can make a big difference to your tax benefits. For example, couples negatively gearing their investment property loan usually find it best to have a larger ownership percentage in the name of the higher income earner.

On the other hand, with a positively geared property, it may be better to have the lower income earner holding a larger ownership percentage. If the property is held jointly, all rental income and losses must be split in line with the ownership percentages and detailed records maintained to substantiate all claims for tax deductions.

Also consider whether either partner expects a career change that will affect their future income, as changing ownership structures down the track can be costly.

Managing the loan

Once the investment property loan is set up, there are more tax issues to consider. Property investors can only legally claim a tax deduction to the extent the borrowed funds are used for income producing purposes, regardless of the security offered to obtain the loan.

In cases where the loan monies are used for both private and income producing purposes (such as a property partly used for rental and partly as your home), you must split all expenses into deductible and non-deductible amounts.

Watch your deductions

Many property investors focus on tax deductions, but care is required as the rules are complex. For example, if you make extra repayments on your investment loan and then use the redraw facility to obtain money for private purposes, you cannot claim a deduction for the interest attributable to that money.

Normal tax deductions for a rental property include the cost of advertising for tenants, professional property management, interest, council rates, land tax and strata fees, building and landlord insurance, pest control and accounting fees. These costs, however, can only be claimed when the property is tenanted or available for rent.

Other points to watch include claiming a deduction for loan establishment fees. This must be spread over the term of the loan or a five-year period, whichever is shorter. If you claim travel expenses for inspections, the main purpose of the trip must be to visit the property; if there is a private portion all expenses must be split.

Depreciation or capital works?

Claims for depreciation, or the decline in value of assets with a limited effective life (such as freestanding furniture, washing machines and TVs), can be made each year, but deductions for any capital works must be spread over 40 years.
Capital works include improvements or alterations such as removing an internal wall or replacing capital equipment such as old kitchen cupboards.

Investors need to be careful when claiming for the cost of repairs to their property. These are immediately deductible, but improvements such as replacing a damaged laminated kitchen bench top with a granite one must be claimed as capital works expenditure.

Check your CGT

CGT is another tricky tax area, but the key to minimising your bill is to ensure you identify all legitimate expenses that contribute to the cost base of the property used to calculate any capital gain.

The cost base includes the price paid for the property plus buying and selling costs like stamp duty, legal fees and the agent’s commission. Rental properties owned for more than 12 months attract a 50 per cent discount on any capital gain.

To ensure you are making the most of the tax rules relating to your investment property, call our office today.

Positives and negatives of gearing

Positives and negatives of gearing

Negatively gearing an investment property is viewed by many Australians as a tax effective way to get ahead.

According to Treasury, more than 1.9 million people earned rental income in 2012-13 and of those about 1.3 million reported a net rental loss.

So it was no surprise that many people were worried about how they would be affected if Labor had won the May 2019 federal election and negative gearing was phased out as they had proposed. With the Coalition victory, it appears negative gearing is here to stay.

While that may have brought a sigh of relief for many, negative gearing is not always the best investment strategy. Your individual circumstances will determine whether negative gearing is advisable. For many, it may pay to positively gear.

So, what is gearing?

Basically, it’s when you borrow money to make an investment. That goes for any investment, but property is where the strategy is most commonly used.

If the rental returns from an investment property are less than the amount you pay in interest and outgoings you can offset this loss against your other assessable income. This is what’s called negative gearing.

In contrast, positive gearing is when the income from your investment is greater than the outgoings and you make a profit. When this occurs, you may be liable for tax on the net income you receive but you could still end up ahead.

While negative gearing may prove tax effective, it’s dependent on the after-tax capital gain ultimately outstripping your accumulated losses.

The importance of capital gains

If your investment falls in value or doesn’t appreciate, then you will be out of pocket. Not only will you have lost money on the way through, but you won’t have made up that loss through a capital gain when you sell.

That’s the key reason why you should never buy an investment property solely for tax breaks.

But if the investment does indeed grow in value, then as long as you have owned it for more than 12 months you will only be taxed on 50 per cent of any increase in value.

When it pays to think positive

If you are retired and have most of your money in superannuation, negative gearing may not be so attractive. This is because all monies in your super are tax-free on withdrawal. And thanks to the Seniors and Pensioners Tax Offset (SAPTO), you may also earn up to $32,279 as a single or $57,948 as a couple outside super before being subject to tax.

It makes more sense to negatively gear during your working years with the aim of being in positive territory by the time you retire so you can live off the income from your investment.

While buying the right property at a time of your life when you are working and paying reasonable amounts in tax may make negative gearing a good option, sometimes positive gearing may still be a better strategy.

Case study

ASIC’s MoneySmart website compares two people each on an income of $70,000 a year. They each buy an investment property worth $400,000, paying 6 per cent interest. Additional expenses are $5000 a year while the rental income is $500 a week.

Rod negatively gears, borrowing the full purchase price; Karen is positively geared with a loan of $100,000. In terms of annual net income, Rod who negatively geared is worse off than if he had not invested in a property at all, with net income of $52,868.

Positively geared Karen ended up $10,000 ahead, with net income for the year of $64,433.

Of course, if his property grows in value over time, Rod should ultimately recoup some or all these extra payments.

Claiming expenses

If you do negatively gear, then it’s important that you claim everything that’s allowed and keep accurate records.

For investment property, this includes advertising for tenants, body corporate fees, gardening and lawn moving, pest control and insurance along with your interest payments.

If you want to know whether negative gearing is the right strategy for you, then call us to discuss.

SMSFs and property: What are the rules?

SMSFs and property: What are the rules?

With the property market hitting all-time highs in 2021, interest in investing in direct property through your SMSF has never been higher.

In the September 2021 quarter, Australia’s SMSFs had almost $88 billion invested in non-residential real property, with another $47 billion in residential real property.

But before you add property investments to your SMSF, there are rules you need to be aware of.

Rules for SMSF property investments

All SMSF investments – not just property – must meet the sole purpose test. This means your SMSF must be maintained for the sole purpose of providing retirement benefits to fund members or their dependants.

Also keep in mind the related party rule, which prohibits SMSFs from buying real property from a related party. This means your relatives, business partners and their spouse or children, any company a fund member and their associates control or influence, or any trust a fund member or their associates control.

There are two exceptions. One is buying business real property like agricultural property, or a shop or office from which you operate your business. The other is if the value of the in-house asset is less than 5 per cent of your SMSF’s total assets.

Related parties and SMSF members can lease business and farming properties from your fund, but the arrangement must be at commercial rates and paid in full on the due date. Renting residential or holiday properties to related parties – even at market rent – is not permitted.

Borrowing the right way

Buying a property investment usually involves borrowing money. Again, strict rules apply.

SMSF loans are normally through a limited recourse borrowing arrangement (LRBA), although other structures such as tenants-in-common or related non-geared unit trusts may be acceptable. In the September 2021 quarter, SMSFs had almost $63 billion invested through LRBAs.

LRBAs prohibit lenders from seizing other assets in your SMSF if you default on your loan, so they tend to impose tougher loan conditions. Most lenders now require an SMSF to have a buffer of cash and/or shares equivalent to around 10 per cent of the property’s value.

You must also establish a bare trust (which is separate from the SMSF) to hold the property. And restrictions are imposed on the modifications you can made to your property, with significant changes requiring a new loan. Improvements must be paid for from cash already in the SMSF, not borrowed money.

Be mindful of diversification

Although including property in your SMSF can be a great idea, they are expensive assets. Unless the fund has a high balance, they can reduce diversification across asset classes. This can leave your SMSF exposed to investment risk and make it tricky to pay member benefits without needing to sell the property.

Adding an investment property must also fit the fund’s investment strategy in terms of diversification, liquidity and maximising returns to fund members. The ATO no longer automatically accepts buying an investment property is in the best interest of members, if it is the main asset and the fund’s total balance is low.

The fund’s trust deed must also provide the trustees with authority to implement a borrowing arrangement.

Tax benefits

A key benefit of using your SMSF to invest in property is the concessionally taxed super environment. Instead of paying your marginal rate, an SMSF only pays 15 per cent on investment income the property earns. Once fund members retire, rental income is tax-free.

There are also capital gains tax benefits. Properties held by an SMSF for more than 12 months pay a discounted rate of 10 per cent on any capital gain when sold.

Interest payments on borrowings are tax deductible and if your SMSF’s expenses exceed its income, a taxable loss can be carried forward to offset future income. Losses cannot, however, be offset against your personal income.

That said, not following the tax rules can be costly. If a property investment doesn’t meet the requirements of the sole purpose test for example, a SMSF becomes ineligible for the normal super tax concessions.

And if you finance an LRBA through a related-party loan, the loan must meet the ATO’s safe harbour guidelines. Otherwise, the income and capital gain from the asset will be taxed at the top marginal tax rate.

There’s a lot to think about, so if you would like to discuss property investments and your SMSF give us a call.

Understanding CGT when you inherit

Understanding CGT when you inherit

Receiving an inheritance is always welcome, but people often forget the tax man will take a keen interest in their good fortune.

When ownership of an asset is transferred, it triggers a capital gain or loss with potential tax implications. So what are the tax rules when you inherit a property, or another investment asset like shares, and when you eventually decide to sell?

Tax and your inheritance

The main tax applying to the transfer and sale of an asset is capital gains tax (CGT). This is added to your tax bill in the financial year in which you sell an asset acquired on or after 20 September 1985.

CGT is not a separate tax but forms part of your normal income tax and is imposed at your marginal tax rate. It applies to the sale of assets such as residential and investment properties, shares and managed funds.

The tax is calculated based on any increase in the value of the asset between the time you acquire or buy it and when you eventually sell.

Inheriting an asset

Fortunately, when someone dies, a capital gain or loss does not apply when an asset passes to the deceased person’s beneficiary, their executor, or from the executor to a beneficiary.

This means if you inherit a property, shares, or an interest in an investment asset, the capital gain on the asset is disregarded by the tax man.

There are also exemptions for personal use assets you inherit that were purchased for less than $10,000. This includes furniture, household items and the like.

Generally, CGT is not payable if you inherit collectables such as art, jewellery, stamps or antiques, provided their market value is $500 or less.

Selling your new asset

Although there is no CGT when you inherit a property, that’s not the end of it, as there may be a tax bill when you eventually sell. If the asset is a dwelling, special rules such as the main residence exemption apply in part or full.

Generally, if you sell an inherited property within two years of the person’s passing and it was either purchased before September 1985 or was the deceased’s main residence at the time or just before their death, and in most cases, not rented being at the time of their death, CGT does not apply.

The two-year period relates to the time from the date of death to the settlement – not exchange – of the sales contract. In some cases, it’s possible to apply to the ATO for an extension to this two-year period.

Special tax rules may also apply if the property was not the deceased’s main residence but it was purchased prior to 20 September 1985. This may result in a full or partial exemption from CGT, so it’s important to talk to us about your particular situation.

After the two-year deadline

If you decide to sell your inherited property after the two-year exemption period has elapsed, you will generally have to pay CGT on the capital gain on your property unless it has become your main residence.

The amount of CGT you pay is based on the increase in your property’s value from the date of the deceased’s death to the date of the sale.

When working out the capital gain on an inherited property asset, CGT is calculated based on the sale price less the cost base of the asset. In most cases, the cost base is equal to the market value of the asset at the date of the deceased’s death, although this will depend on when the home was purchased (before or after 20 September 1985).

If CGT applies when selling an asset, you normally receive a 50 per cent discount on the amount of tax payable if the asset is owned for over 12 months.

CGT is a complex area of taxation, especially as it applies to inheritance, so if you would like help with handling the tax matters relating to an inherited asset, contact our office today.

Backyard building boom

Backyard building boom

The tax implications of redeveloping your property

With house prices rising and well-located land becoming scarce in cities, many Australians are looking for creative ways to tap into the value of their own backyard. Some subdivide, while others take the knock-down and rebuild route.

But like most things in life, the tax man takes a close interest when it comes to redeveloping your property, so it’s important to get professional advice to ensure you don’t end up with a big tax bill.

If you sell a property bought on or after 20 September 1985, you are liable for capital gains tax (CGT) on any capital gain you make. One bright spot is that you are generally eligible for a full exemption on your CGT liability when you sell your principal place of residence (PPR) if you satisfy the conditions for a main residence exemption.

Demolish and rebuild

If you demolish your home and rebuild, the new property will not be subject to CGT provided you occupy the new residence. Otherwise, the ATO may deem the development was for commercial gain and a subsequent sale will be liable for tax as it is viewed as a new dwelling construction.

You don’t lose your main residence exemption while you are building, as you can elect to treat the vacant land as your PPR from the time the demolished house was last occupied to when you begin living in your new home, provided the gap is not more than four years.

Be aware though that there is a trap if you sell your newly vacant land as a development site, or subdivide it into vacant lots. For the PPR exemption to apply, there must be a dwelling on the land. If you demolish and then sell, the main residence exemption will only apply if the sale occurred when there was a dwelling on the land.

Subdivide and sell vacant block

A common strategy for homeowners with a large property, is to subdivide. In this situation there is no CGT payable if you retain ownership of both blocks, as you have not made a capital gain or loss.

If you later decide to sell the vacant second block, then the tax man will want his share of the profit. However, the 50 percent general discount for the CGT liability can be used if you have retained ownership of the block for at least 12 months.

In this situation, the ATO also generally takes the view that selling the second block is not a profit-making undertaking, but rather a ‘mere realisation’ of an asset for income tax purposes.

Subdividing, building and selling

A more complex situation is where you decide to subdivide your property, retain your existing family home, build a new dwelling on the other block and sell it off.

If you build a new dwelling on the second block and then sell it the PPR exemption for CGT does not apply to that property. Any capital gain on the second dwelling is liable for CGT.

To make things worse, if you continue to use your original home as your main residence, the ATO is likely to deem the second dwelling was built with the intention of making a profit, so neither the PPR exemption or the CGT 50 percent general discount apply when the second property is sold.

The cost base for the CGT liability is calculated by dividing the original property cost on a ‘reasonable basis’. Building costs and fees for the second dwelling are then added to the split land cost to create the cost base for calculating the capital gain.

GST could also apply to the sale price if you build a new residential premises for sale (even if this is a one-off transaction), although you can generally claim GST credits for your construction costs and any purchases related to the sale.

The tax rules in this area are complex, so call us to discuss how the tax legislation could affect your property subdivision plans.

Discover the real cost of selling your property

Discover the real cost of selling your property

Marketing campaigns, agent commission, taxes… there’s a lot to consider when it comes to the cost of selling your home. We’ve laid out the main expenses for you, so you can stay on track, and on budget.

Marketing costs


Advertising costs vary depending on a number of factors, especially how you choose to sell and how long your home stays on the market. But there are some common costs you can’t avoid, such as listing fees (online or in print), photography for your home and floor plans.

Repairs and presentation

Pre-sale repairs and presentation can add significant costs to prepping your house for sale. Work out a budget for home staging, cosmetic upgrades, minor repairs and landscaping.

“Get an agent in before you decide to renovate,” says Kylie Davis, head of marketing, Property Solutions & Content at CoreLogic. “Often the agent has very different ideas on what makes property a dream home to live in. If it’s to change the carpet or paint the walls, do it. But if it’s putting in marble bathrooms, maybe not. Decisions must be made with the head, not the heart – think about the buyer.”

Agent fees

Commissions and other bonuses

The agent’s commission is one of the more significant costs in selling your house. Agents can charge fixed rates, a flat fee or a tiered rate that’s based on your property’s final sale price. Make sure your agent has a good track record, and that you settle on all fees before signing.

Auction and private sale fees

Advertising for private sales tends to cost less than it does for auctions. You don’t need to pay for an auctioneer, and if you accept an offer immediately, you’ll be up for less marketing costs. However, if your home doesn’t sell quickly, you’ll need to keep it on the market. This could mean continued advertising costs; you may even want to refresh your campaign completely.

Online fixed fee sites

Listing with fixed fee agents online and ‘for sale by owner’ websites helps you control your costs in fixed-fee packages. But remember, after you meet the agent face-to-face for the initial property viewing, you’ll largely have to drive the sale process yourself.

Legal fees

Conveyancing and solicitor fees

Conveyancing is the process of transferring legal ownership of the home from seller to buyer, also known as settlement. It’s a must in every state, and fees vary depending on where you’re selling.

These fees cover work that goes into assessing contracts, dealing with banks and lenders, conducting title searches, adjusting rates and taxes, and booking the settlement date.

Shop around for a good conveyancer by researching the services they offer, how well they understand your situation, and how they charge.

Title search and transfer

The land title outlines the owner of the title, and all current recordings and registrations on the title including mortgages, easements, and any liens, caveats or covenants.

Government and bank fees

Capital gains tax

Capital gains tax is the tax you pay on a capital gain you make from selling an asset. For example, if you paid $650,000 for a property and sell it for $750,000, you’ll pay capital gains tax on the difference of $100,000.

The good news is that, under the main residence exemption, you usually don’t have to pay capital gains tax on the family home – but there could be exceptions. Learn about calculating and paying capital gains tax to stay on track and in the know.

Mortgage discharge fee

A mortgage discharge fee is payable to your bank or financial institution when you close the mortgage.

Buying your next home

Stamp duty

You’ll need to pay stamp duty on your next home based on the purchase price of the property and its location. To find out how much stamp duty could cost on your property, you can use this stamp duty calculator.

Bridging loan

If you’ve found your next home before you’ve sold your current one, you might need to take out a bridging loan to get the funds you’ll need. Learn more about the ins and outs of bridging loans, and buying before selling.

Accurate valuation

Your agent can estimate the value of your house, but nothing beats a valuation from an accredited, independent valuer. Research a few third-party valuers, and choose the best option for your budget and needs.

Lenders Mortgage Insurance

Have you been approved to borrow more than 80% of the assessed value of your home (loan-to-value ratio, or LVR)? Then most lenders will ask you take out a Lenders Mortgage Insurance policy. This provides insurance in relation to the increased risk of your loan.

Relocating and storage costs

You could be up for moving and storage costs at various stages of the sale. For example, most home-stagers recommend you move out while your home is on the market to provide easy access to potential buyers. Moving and storage costs vary from state to state, and can reach the thousands if you hire professionals.

Utilities connections

Your energy provider may charge disconnection and reconnection fees when you move. These fees also vary from state to state, so check what you could be up for and budget accordingly.

Source: NAB

Reproduced with permission of National Australia Bank (‘NAB’). This article was originally published at

National Australia Bank Limited. ABN 12 004 044 937 AFSL and Australian Credit Licence 230686. The information contained in this article is intended to be of a general nature only. Any advice contained in this article has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice on this website, NAB recommends that you consider whether it is appropriate for your circumstances.

© 2022 National Australia Bank Limited (“NAB”). All rights reserved.

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

Six ways to pay off your mortgage faster

Six ways to pay off your mortgage faster

Paying off your mortgage early will save you money and take a financial load off your shoulders. Here are some ways to get rid of your mortgage debt faster.

Switch to fortnightly payments

If you’re currently paying monthly, consider switching to fortnightly repayments. By paying half the monthly amount every two weeks you’ll make the equivalent of an extra month’s repayment each year (as each year has 26 fortnights).

Make extra payments

Extra repayments on your mortgage can cut your loan by years. Putting your tax refund or bonus into your mortgage could save you thousands in interest.

On a typical 25-year principal and interest mortgage, most of your payments during the first five to eight years go towards paying off interest. So anything extra you put in during that time will reduce the amount of interest you pay and shorten the life of your loan.

Ask your lender if there’s a fee for making extra repayments.

Smart tip: Making extra repayments now will also give you a buffer if interest rates rise in the future.

Find a lower interest rate

Work out what features of your current loan you want to keep, and compare the interest rates on similar loans. If you find a better rate elsewhere, ask your current lender to match it or offer you a cheaper alternative.

Comparison websites can be useful, but they are businesses and may make money through promoted links. They may not cover all your options. See what to keep in mind when using comparison websites.

Switching loans

If you decide to switch to another lender, make sure the benefits outweigh any fees you’ll pay for closing your current loan and applying for another.

Switching home loans has tips on what to consider.

Make higher repayments

Another way to get ahead on your mortgage is to make repayments as if you had a loan with a higher rate of interest. The extra money will help to pay off your mortgage sooner.

If you switch to a loan with a lower interest rate, keep making the same repayments you had at the higher rate.

If interest rates drop, keep repaying your mortgage at the higher rate.

Use our mortgage calculator

See what you’ll save by making higher loan repayments.

Consider an offset account

An offset account is a savings or transaction account linked to your mortgage. Your offset account balance reduces the amount you owe on your mortgage. This reduces the amount of interest you pay and helps you pay off your mortgage faster.

For example, for a $500,000 mortgage, $20,000 in an offset account means you’re only charged interest on $480,000.

If your offset balance is always low (for example under $10,000), it may not be worth paying for this feature.

Avoid an interest-only loan

Paying both the principal and the interest is the best way to get your mortgage paid off faster.

Most home loans are principal and interest loans. This means repayments reduce the principal (amount borrowed) and cover the interest for the period.

With an interest-only loan, you only pay the interest on the amount you’ve borrowed. These loans are usually for a set period (for example, five years).

Your principal does not reduce during the interest-only period. This means your debt isn’t going down and you’ll pay more interest.

Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at

Important note: This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  Past performance is not a reliable guide to future returns.


Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

Liability limited by a scheme approved under Professional Standards Legislation. This advice may not be suitable to you because contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.

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