Pre-financing meets with approval

INTEREST only loans provide better tax benefits for property investors according to Investors Club member Graham Kirby.

“The only component that is tax deductible in these loans is the interest, and not the principal reductions,” Mr Kirby said.

He said in the past, the banks had been reluctant to set up interest only loans.

“However, in today’s market, an interest only loan is becoming commonplace,” he said.