The #1 Mistake Homeowners Make when turning their home into an Investment Property!

[@OzNick81P]

Agree with some other comments that the video is a bit confusing. My understanding is: 1. Don't pay down mortgage in property #1, but instead pay into the offset account. 2. When you leverage equity to buy property #2, change the loan type on property #1 from owner occupied loan to an investment loan, allowing you to claim tax write offs. 3. Take the original cash stockpiled in the offset account for property #1 and move it to an offset account for property #2, providing an instant saving on interest on property #2

[@melindagibson6358]

Mind blown! Wish I’d understood this so long ago (& had the discipline to stick with it). Just shared this episode with family. Thank you for sharing your knowledge!!

[@kingsford2032]

i got the same problem , i bought a unit owner occupied for $210k and 3 year after a house as investment for $526 interest only . i live unit for 5 years after rent it out , the house that i bought i put on rent strait way after 7 years I move in to the house . The extra money i put in to the unit move in to the house and start paying as owner occupied , but the bank lock $160K of deposit & payment of the unit , can't touch, so if i transfer those $160K from the unit i could pay less interest in the house and could claim interest $160K in the unit as invesment in my tax return. I will ask my bank if i can do off set account, now when interest rate is to high will be great.

[@alexantran]

I got confused, do you mean ,we should refinance the first home borrow more against the equity to move money to the second home so the debt in the first home to be 100%?

[@jmglandscapemanagement2713]

Would this mean the loan structure is set up to be interest only? Just to clarify that you don't want to pay any of the principle down to increase the amount accumulated in the offset to put towards the next property?

[@ihavelegs]

Yeah i dont get what they were trying to say.... are you saying that you shouldnt use your home as collateral?

[@elitevbman]

What about if you refinance the 1st house back to 80% before the switch is made?

[@198746779838]

Cant you just access the equity in the investment property a transfer it to the O/O?

[@georgesalim]

This is great insight. Thank you.

[@OhQuanzyy]

So if I understood this correctly, to summarize, we would rather have a higher LTV on rental than our new primary residence? Take the equity from the first property and put it into our new primary residence?

[@creed2rock]

Just discovered your channel and just from watching this video I’m excited that I will be truly learning a lot from the rest of your content😀I’m so new at the whole property scene though and for that I ask that when you explain things please explain it like your talking to a 12 year old🙏🏽🙏🏽Thank you for the amazing content🙏🏽🥰❤

[@edenkenny1361]

Love these videos, you two work so well together. Wouldn’t the time left on the loan be decreasing every year though (unless you refinanced back to a 30yr after 5-10-15 yrs for e.g.) Otherwise when you pull out the money from the offset account you would have the same debt but with less time to pay it back therefore you have much higher repayments making it less likely to be cash flow neutral at least when you rent it out. Also does the “purpose” change when you refinance and change to this structure. I assume that if you were to refi then this would be a good time to pull out a portion of any existing equity in the property and put it in the offset?

[@DiegoBoquer]

Come on guys, is this for US viewers or NZ or AU?

[@COMEMOTIVATEME]

This video did not Make any sense U2 were all over the place with trying to explain this and then what happened to make money simple again

[@jc2426]

Nice

[@Motivational_Flavio]

Such a confusing video, had to repeat it 3 times to understand