All Topics / Help Needed! / What would you do with EXTRA Cash FLOW!!!

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  • Profile photo of JpcashflowJpcashflow
    Participant
    @jpcashflow
    Join Date: 2007
    Post Count: 575

    Hi Every one,

    Silly question here….

    At the moment I am saving for another IP, I won’t be using the equity from my other IP and PPOR. (Equity used for my business) and I personally want to keep this investment separate.

    Our Scenario is this:

    Current PPOR Loan: 98K (CBA) linked with a MISA account

    Personal Income: We usually can save between 2K to 4K per month from our personal income

    Business Income: We are currently putting any additional cash flow from the business into the business loan

    With our savings, should we continue to put all the money into the MISA account until we find a property “etc” or put it into a online savings account….

    Cheers

    Jpcashflow | JP Financial Group
    http://www.jpfinancialgroup.com.au
    Email Me | Phone Me

    Your first port of call in finance :)

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    MISA account because if you place it in a savings account you'll be taxed on the interest.

    When it comes time to buy the next IP, look to "borrow" the funds rather than use "cash" 

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544

    Offset rather than savings for the very reasons Jamie mentions.

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    You can have your cake and eat it too.  You can fiddle with the mortgage in a very specific manner and use equity to buy the next IP, but still have the other IP standalone.  Jamie M has already responded, why not get in touch and talk to him about how best to do this.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of JPS25JPS25
    Participant
    @jps25
    Join Date: 2010
    Post Count: 121

    Definitely in your offset as will will help reduce the interest added to your mortgage

    We started investing in properties end of 2009 and have now paid out our PPOR

    Everything extra now goes into an online savings in my name ( I am not earning so no tax) and Investments in hubby's name

    We do have an offset with IP accounts but choose to use it just for rents in and interest out

    Agree with JacM use equity not cash for IP's

    Profile photo of jmsracheljmsrachel
    Participant
    @jmsrachel
    Join Date: 2012
    Post Count: 711

    offset account. Saves you interest.

    Profile photo of jmsracheljmsrachel
    Participant
    @jmsrachel
    Join Date: 2012
    Post Count: 711

    Which suburbs / area are you looking for your next ip? I think last time you were talking about buying something in Chile?

    Profile photo of JpcashflowJpcashflow
    Participant
    @jpcashflow
    Join Date: 2007
    Post Count: 575

    Thanks for all of your comments, Sounds like the perfect option, Invest the extra cash in the OFFSET….

    We have one in CHILE already (paid off) our bank manager in CHILE has organised a finance for us all ready. We head down their in JUN 2013 to buy another IP.

    My goal is to buy another one in Melbourne during the year,Maybe in Werribee not to far from Watton Street,  

    Jpcashflow | JP Financial Group
    http://www.jpfinancialgroup.com.au
    Email Me | Phone Me

    Your first port of call in finance :)

    Profile photo of mattstamattsta
    Participant
    @mattsta
    Join Date: 2011
    Post Count: 604

    Of course, offset accounts instead of savings to prevent taxes and interest. Good luck!

    Profile photo of JpcashflowJpcashflow
    Participant
    @jpcashflow
    Join Date: 2007
    Post Count: 575

    Hi All,

    Thank you very much, I thought this might be the case as well, but it never hurts to get an opionion.

    Jpcashflow | JP Financial Group
    http://www.jpfinancialgroup.com.au
    Email Me | Phone Me

    Your first port of call in finance :)

Viewing 10 posts - 1 through 10 (of 10 total)

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