Terryw wrote:
Yes, until it is needed it should be kept in an offset account saving you non-deductible interest.I guess the main point is not to use offset funds for investments directly. (unless you have no non deductible debt)>

Terry, I understand that we should keep funds in offset account which I would be doing with my new loan setup. I…[Read more]

Shape wrote:
https://www.loans.com.au/Pages/Home.aspx Ummm did loans.com.au just increase it's rate from 6.59- too 6.69 ??? without RBA movement, or was it a special rate etc??? and it looks like they changed the "5 years RBA linkage" down to 3 years..wonder what else has changed?

Michael, As per their press release on 31st May 2011…[Read more]

Terry, Thanks. Cant't I argue that there was no way I could produce Cheque from my lender on short notice and transfer into Saving account was only a medium (Which Is confirmed by their short stay parking into my Savings Account)….Do you know what are the penalties if ATO find this arrangement as incorrectly being claimed as deduction?

Terry, Yep Saving Account did had around $1K at that time being my main transactional account as well.Is there any Ray of Hope for me based on TR 2000/2 (I dont understand them fully):First Exception – Borrowed money recouped and repaid 17. Where money borrowed and applied to a particular use (the 'relevant use') is recouped in whole or in part, i…[Read more]

Here is the Sequence of Events (Purchase Price $320K)15/06/10 -Paid $800 (.25% of Purchase Price)25/06/10 -Paid $15200 (To make intial 5% deposit) from redraw of existing PPOR loan. (Variation completed 4 days late on 29/06)29/06/10 – Variation settled with existing lender – New loan account with the increase setted up29/07/10 – Transferred…[Read more]

ksherwell wrote:
Have you considered UBank or Beyond the banks? They too have 6.5% for refinances. Beyond can give heavy discounts I haven't heard of any better rates.

Kane,    UBank product is definitely not good for Investors who would possibly rent out their property in future as they only offer Redraw. No Offset. Beyond the Banks- I j…[Read more]

Can somebody please confirm if Interest on loan taken to pay for stamp duty is tax deductible or not.E.g. –  I did a 45K topup on my PPOR to pay 10% deposit (32K) for Ip purchase + Approx 10K stamp duty + other purchasing costs. Can I count Interest charged on this loan portion for negative gearing purpose? Thanks

Terry,              Just to clarify, Can I still withdraw money sitting in redraw in the IO loan portion of PPOR and use it to fund new PPOR purchase. This should not be classified as borrowing as the original loan amount remains same and amount sitting in redraw was just there to save on interest.I understand from what Terry explained that Amount…[Read more]

Hey Mick12345, which website is that graph coming from??

Thats true rudra. But I would say market is slowing down and even if you take 3-4 months it will actually help you save more for the purchase.Probably wait for upstairs work to finish first and then start looking for IP.

ok. I changed oven, cooktop in kitchen and bathroom renovation with change in vanity and cabinet. But whether it can all be combined together or not, have to check with my accountant.Thanks

Mr5o1, Thanks for your reply.I have met tenants personally when they moved in. They seems to be nice people and requested for digital antenna. I am pretty sure they are up for long term stay in my property and I thought why not create goodwill. They look like they are going to take good care of the property. (They rented last place for 7 yrs) …[Read more]

Apologies for delay in replying..

Terryw wrote:
Why bother with an offset on the investment property? I would not use one there until you have fully paid off the PPOR loan or have the 100% offset attached to this at the level of teh loan.

So are you suggesting all IP related expenditures to come out of the same offset attached to PPOR?

Terryw…[Read more]

Can somebody please confirm if this is the Ideal setup for PPOR and IP loan to make best use of funds..I have combined information from current and previous posts. This is assuming you want to have offset account only (no LOC) and PPOR may be turned into IP in future. PPOR and IP loan with different lenders.(1) PPOR (IO Loan)…[Read more]

Thanks Banker !! Awesome Data at your fingertips !!

Hi Sammmeee         I changed my existing PPOR loan with MyRate to IO but I have taken new IO loan for my IP with Commonwealth Bank. Thanks

cmason wrote:
My lender had this on thier website:An offset account is a feature of some mortgages. It is a savings account attached to the mortgage, with the balance used to offset the interest charged on your loan. Some lenders, such as <lender>, have a free redraw and additional repayment facility on their variable rate loans which have the…[Read more]

Thanks Terry..            I think I have got answers to my questions now    Yes, Part of Loan A ($13200) will be invested later and that will leave Loan A s Mix loan. I will be better off paying down Loan B first.I will be careful in future to setup my Increased amount as a new split. Thanks once again. Your are a legend !!Aman

Hi Terry   I know I have messed up in my explanation. You have explained well and I understand that but still I am not sure if this apply in my case. I will explain again my dilemma with actual facts. Please help me understand. I really appreciate your time and effort in this. Current Loan Situation:…[Read more]

Thanks for detailed explanation Terry. In probably a year time, I will move away from my existing lender for PPOR to have both loans with my new IP lender and setup LOC there.Luckily I have changed my PPOR to IO now so If redraw on that 13,200 later for 2nd IP purchase, Tax-deduction calcuation should be still manageable.Now when I redraw on that…[Read more]