Rental Property Mortgage - Interest Only?

The reason I advise it is that very few people actually put the money aside. In the OP's case he mentioned purchasing a car (! depreciating asset) instead of making capital repayments.

Anyone who is canny enough and plays the tax system well would in general be going interest only and have other means of paying back the capital, wouldn't think those are in general the type of people who ask questions on AAM.
 
Bronte said:
The reason I advise it is that very few people actually put the money aside. In the OP's case he mentioned purchasing a car (! depreciating asset) instead of making capital repayments.

Anyone who is canny enough and plays the tax system well would in general be going interest only and have other means of paying back the capital, wouldn't think those are in general the type of people who ask questions on AAM.
Click to expand...

I understand what you mean now. I am relying on the sale of my RIP to pay back the mortgage, maybe even refund me my equity. Doesn't seem likely in the short term. Slim
 
Hi,
Bank is losing money on the tracker. I am surprised, that they extended it last year. If they get you to pay down capital they are losing less money.
 
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