Interest Only vs Principal and Interest: Which Loan Is Better for Investment Properties?

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The loan repayment strategy you choose today could shape your investment success for decades. So are you better off with an interest-only loan or principal and interest repayments?

In this episode, I explore the interest-only vs principal and interest debate for investment properties in Australia. I hold nothing back as I share clear examples and real cash flow numbers.

Tune in to discover:

✅Why interest-only loans might hurt your borrowing power

✅How your decision impacts your borrowing capacity, tax deductions, and cash flow

✅The real cash flow difference between the two options on a $750K property

✅How to use an offset account for flexibility and future investing

✅When and why to refinance or switch between repayment types

✅How I personally structure my own investment property portfolio

This is a must-watch for first-time investors, rentvesters, and experienced property owners who want to optimise their investment loan structure for maximum growth and minimum risk.

Key Points

00:01:20 Interest Only Benefits
00:01:40 Borrowing Capacity
00:02:20 Interest Only Periods
00:03:00 Principal Benefits
00:04:20 Cash Flow Numbers
00:06:00 Mortgage Calculations
00:07:00 Refinancing Strategy
00:08:00 Offset Account Approach

Whether you're preparing to meet a mortgage broker, or simply want to understand your options better, this video will give you clarity and confidence before locking in a loan.

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Disclaimer: All information contained in this podcast is general in nature and does not consider your individual circumstances. You should consider the appropriateness of this information with regards to your individual objectives, financial situation and needs, and speak to a professional.