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b'ARVE Error: Mode: lazyload not available (ARVE Pro not active?), switching to normal mode\\n\\n\\n\\n\\n\\n\\n\\n\\n{"@context":"http:\\\\/\\\\/schema.org\\\\/","@id":"https:\\\\/\\\\/onproperty.com.au\\\\/interest-only-vs-principal-and-interest\\\\/#arve-youtube-yedu8zl1f1y659a0b2d65942282832562","type":"VideoObject","embedURL":"https:\\\\/\\\\/www.youtube-nocookie.com\\\\/embed\\\\/yEdU8Zl1F1Y?feature=oembed&iv_load_policy=3&modestbranding=1&rel=0&autohide=1&playsinline=0&autoplay=0"}\\n\\n\\n\\n\\n\\nInterest Only vs Principal and Interest loans can have a huge impact on your cash flow and can mean the difference between a property paying for itself and then some and you having to find money to keep the property afloat.\\nResources Related To This Episode\\nProperty Tools\\n\\nOn Property Membership\\n\\nTreat Property Investing Like A Business\\n\\nHow Changes In Interest Rates Can Affect Cashflow\\n\\nING Mortgage Calculator\\n\\nCompare Interest Rates\\nTranscription:\\nHaving an interest only loan versus a principal and interest loan can have a serious impact on your cashflow and can mean the difference between the property paying for itself or you needing to find money to keep that property of float. So in this episode we\'re going to be on really basic and looking at how principle and interest versus interest only can affect your cash flow. Hey, I\'m Ryan from on-property dot com dot EU. I hope people invest in property and achieve financial freedom and cashflow is vital when it comes to investing in property. You can be in positive cashflow position where the property pays for itself and then some or a negatively geared position where you\'re constantly paying money out of your pocket each week in order to keep those properties afloat and if you have to pay too much money out of your pocket than the whole tale of cards can come crumbling down.\\n\\nAnd so I don\'t want that to happen to you. I want you to be aware of how these different types of loans can affect your cash flow. So let\'s jump into it. We\'re going to be looking at this calculator from ing, which is a mortgage calculator. If you\'re listening along on the podcast, then I will be talking through all these numbers, so don\'t worry. You don\'t need to watch the video, but what we\'re going to do is start with a loan amount of $100,000. Now that is not a realistic loan amount to buy a property here in Australia, but what I like about using 100,000 dollars is we can see how this difference looks on a small amount and then it\'s really easy to scale up from there. So we scale up to $500,000. We\'re just five x, whatever our results are. If we scale up to a million dollar loan, then we just x whatever we\'re looking at, but this can give us a really clear indication of the different.\\n\\nSo we\'re going to be looking at a loan period of 25 years. We\'re going to be looking at a loan amount of five percent, which is probably a bit high for today\'s loan amounts, but I like to use five percent. We\'re going to be looking at weekly repayment amounts because I like weekly because then you can compare, okay, how much extra weekly rent, what I need to be able to cover this extra cost, and then we\'ve got principal and interest here so we can see on this $100,000 loan across 25 years at five percent per annum. We\'re looking at $134 80 per week. Now we\'re gonna jump over to property tools.com dot a u, which is the tool that I created myself in order to be able to quickly assess the cashflow of a property to see whether it\'s going to be positive cashflow negative and by how much.\\n\\nIf you\'re on, check that out. Go to property tools.com dot a u and you can sign up for it over there. So we\'re going to put in a purchase price of $100,000. We won\'t worry about the rental income at the moment. Interest rate of five percent and deposit. We\'re going to put a zero percent just so we get that full loan amount here of $100,000. Now if we scroll down, we can see the interest cost here of $96 and fifteen cents per week. So we can say with interest only at five percen...'