Typing from phone so apologies for errors. 

Instead of using cash from offset to cover the deposit/costs on your next IP, you could look to inject those funds into the ppor loan and then re borrow as a separate loan split. That way, the deposit/costs become deductible.

Will you hold onto your current PPOR as an IP once you move into the next property?

Jamie

Hi James

Is your current property an IP or PPOR?

A cash deposit won't be deductible but a borrowed one should be.

Cheers

Jamie

I couldn't see why not – it's the purpose that matters here and if the purpose is for investment then it should be deductible.

Cheers

Jamie

Technically it's possible (if the land could be sub divided).

You won't be able to sub divide a block that is part of a house and land package though. Those parcels of land have already been divided up.

Cheers

Jamie

There's nothing really wrong with CBA (providing they're the right fit for you) – their offset account is a bit of a pain but apparently that's due to change soon. 

Cheers

Jamie

Just made two separate $5k claims with Youi for one IP – they paid out on one without too much hassle, the other claim was a bit of a pain but they eventually paid out.

Cheers

Jamie

Here's a great article from Medine Simmons that explains the benefits of using a broker over a banker. Obviously being a broker I'm biased – I haven't dealt with a lot of competent branch staff but there are some out there.

Cheers

Jamie

Hi Chetnik

Interest only with an offset account works well under most circumstances but there's a couple of scenarios where it doesn't.

For instance, if you were bad with money management and were tempted to simply make the minimum interest only repayments each month then P&I could be a better option for you because it's a forced method of saving. 

Also, what will you do with the remaining portion of the $330k that won't go towards the PPOR? If you place it in the offset and it's used for a useful purpose then generally ok.

Cheers

Jamie

Yep interest on the LOC is charged daily so the monthly repayment will fluctuate depending on the number of days in the month. For instance, I have a $40k Cba LOC with repayments of around $250 p.m (sometimes more, sometimes less). 

Is the property in a growth area? Do you think there are any indications of it going up in value over the long term? 

If the property isn't costing you anything to hold on to and you think it will continue to grow in value, then I'd consider holding onto it. I'd also revisit the need to spend $25k on external works – seems like a lot. Is it all completely necessary?

Cheers

Jamie