[holoMember@holoJoin Date: 2005Post Count: 8]

January 3, 2008 - 10:43 pm

thanks guys

duckster, yes I do have a single annual fee. I will set up an auto redraw ( I assume you mean a scheduled transfer) to cover the payments.

Thanks for your help

[holoMember@holoJoin Date: 2005Post Count: 8]

January 3, 2008 - 12:56 am

Hi Marc

Thanks for the reply.

As you recommended I have manually transferred an amount from sub account 1 to cover the debit interest taken from sub account 2 and 3. These are now back to the original amounts.

So,you have answered one of my questions, I have to pay the minimum amount, ie interest only for sub accounts 2 and 3 whilst I pay as much as i can (or leave in as much as I can) into sub account 1 ?

Cheers

[holoMember@holoJoin Date: 2005Post Count: 8]

June 25, 2007 - 11:48 am

sorry to drag up this old thread, however I just wanted to say this thread has been very useful in helping me understand why X Collaterising is so bad, especially as I am getting my head around some options at present.

Perhaps another noob (like me) might also benefit.

Cheers

[holoMember@holoJoin Date: 2005Post Count: 8]

April 5, 2007 - 12:41 pm

thanks for the replies all , much appreciated.

I understand that increasing the investment mortgage (interest only) and using the proceeds for my own home is not tax deductible as the prime reason for the loan is not as an investment but rather funds for my own home. Therefore that option gives no real benefit.

You are right Derek, the main reason for the ip's in the first place is a long term investment and to sell them, or one of them, negates this. All common sense and economic sense says don't sell them only to increase our non deductible debt. However we are not happy living where we do, this is why we are in a quandary.

Obviously I don't expect you guys to tell us what to do. Am just keen to ensure I am not missing something really stupid through lack of knowledge.

Reality is I'd prefer to move but minimise the increase in non deductible debt (using the extra $1500 monthly we could afford whilst keeping our ip's.

Quandary continues

Cheers

[holoMember@holoJoin Date: 2005Post Count: 8]

March 16, 2005 - 1:13 am

Thanks for taking the time to reply Derek. I will give the health check a go.