Join our investing community

Tax deduction fto pay investment interest versus Home Loan?

Discussion in 'Investing Strategies' started by razzy1, 8th Jul, 2008.

  1. razzy1

    razzy1 New Member

    Joined:
    8th Jul, 2008
    Posts:
    1
    Location:
    Sydney, NSW
    I have a question. Is it better to pay off my home loan of $450,000 more quickly (primary residence worth $800,000) compared to an investment loan of $190,000 where I have bought equity into a business (where someone told me that the interest is tax deductible)?

    I have about $50,000 per year extra that I can pay to either loan.
     
  2. crc_error

    crc_error The Rule of 72

    Joined:
    1st May, 2007
    Posts:
    1,367
    Location:
    Melbourne, VIC
    Always pay off the highest interest rate non-tax deductible loans first.