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Paying off Margin Loan (yes principle)

Discussion in 'Shares' started by Red Popi, 16th Aug, 2010.

  1. Red Popi

    Red Popi New Member

    16th Aug, 2010
    Melbourne, VIC
    I have a query about paying off a Margin Loan that I have had the last six years. Currently I am accessing funds from the loan anymore as I beleive my share portfolio is fairly mature, the purpose of the loan is for tax deductions.

    I have recently brought a property 850k and I am going to rent it out for 18 months and then move in to use as my PPOR. My question is does anyone know of a good way to start to pay off the Margin loan without selling up the stocks? I made a one off payment last year but will only be able to do about 1/2 as much for next FY. Is is better to go on a month by month arrangement or remain with the pre-paid interest year on year?

    I am 31 earn 140k a year and have 150k debt on the margin loan and I will have a 650k loan on the residential property come October.

    Any ideas would be appreciated as I am trying to sort out loans and commitments at the moment.

    Happy investing

    Red Popi!