which loan best for offset account

Viewing 7 posts - 1 through 7 (of 7 total)

Karen and June
Participant
@karen-and-june
Join Date: 2012
Post Count: 8
April 19, 2012 - 9:25 pm
Hi all
we have just bought propertY #4. first one is commercial (our business) owned but with line of credit attached for expenses. second is hybrid 1/4 ppor and 3/4 ip (farm with house) $360000 loan, third ip 179000loan 4th ip $150000 loan. All IO. we are wanting to set up an offset account to use for personal expenses as we can only use our line of credit for business expenses if we want to keep the tax advantage. which loan would be best to attach it to, the ppor (highest interest but some personal debt) or one of the ip's. Hope someone can help
Thanks
Karen
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
April 19, 2012 - 10:35 pm
Hi Karen
That is like saying how long is a piece of string and without hard personal data it is impossible to provide a structured answer.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
April 20, 2012 - 1:32 pm
What do you mean by "second is hybrid 1/4 ppor and 3/4 ip (farm with house) $360000 loan"
Is it a mixed purpose loan or a large farm with 1/4 used for your home?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Karen and June
Participant
@karen-and-june
Join Date: 2012
Post Count: 8
April 20, 2012 - 10:31 pm
Hi terryw
It's a small farm (45 ac) with 1/4 usaed for home
Karen
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
April 21, 2012 - 12:33 am
Well if the hybrid is a PPOR you would better off linking the offset account to the PPOR portion rather than a new IP.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
April 21, 2012 - 3:15 am
Probably best to put on the farm loan as 1/4 of the interest on this isn't deductible.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Karen and June
Participant
@karen-and-june
Join Date: 2012
Post Count: 8
April 21, 2012 - 9:34 pm
Thanks guys
That's what I thought
Karen