The "Interest-Only" Dilemma
Alright, investment experts... are 'interest-only' loans a financial stroke of genius or just the fastest way to stay poor while technically owning a house? I’ve heard some brokers recommend them to maximize cash flow, but I’m scared the debt will eventually eat me alive. Is the tax benefit worth the risk, or should I just play it safe and pay off the principal from day one?
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Interest-only loans aren’t inherently good or bad — they’re a tool. For investors, they can improve short-term cash flow and, in some cases, make interest more tax-effective, especially early on. The risk is psychological more than technical: the debt doesn’t shrink unless you plan for it. A broker experienced with investment property loans brisbane helps model exit strategies, future repayments, and worst-case scenarios. Used deliberately, interest-only can support growth; used blindly, it can stall wealth. The key is intent, not bravado.