I would set up another offset to avoid this confusion, This would ensure the money has never been paid down from the initial draw down.One could also argue the purpose of the loan from particular dates with a paper trail. Could the purpose of the loan not start from a certain date?That is a very good point….http://www.birchcorp.com.au

Wilma Domjan of the ACT had a claim of additional interest denied b/c she had money redrawn from the loan account into her personal cheque account to pay a bill for her rental property.The ATO successfully argued that mixing the borrowed money with her personal savings she could not clearly show the money that was redrawn from the loan had been…[Read more]

It is an offset account, not the loan account……. that's why, "No" to LOC.Domjan redraw was from her loan account to her personal cheque account…..http://www.birchcorp.com.au

 The following gives you an idea of the complexities of financial advice: Please consider  1.      Plans in relation to health, income insurance, Trauma, Life/TPD (term or whole of life)?2.      Asset protection-general insurance (house, contents, Liability, Indemnity etc)?3.      Tax Deductible Debt v Non Tax Deductible Debt4.      Fee’s and charg…[Read more]

Back into the offset of the I/O loan from investment property that the equity is taken, sometimes setting up several offsets as is applicable to where and how the money is being used.Money does not need to be used at settlement, I like to keep the money available for a rainy day……. If the property market trends backwards, then you buying p…[Read more]

I would still recommend an offset account attached to the investment loan: Two reasons:1. When taking a loan increase due to an increase in equity the money can be separated from the existing. The equity can then be used and separated for investment / business purposes and for personal use.2. If the PPOR is paid down, you now have a place to…[Read more]

Andrew,You are not stupid, but were misguided, that often happens in life, where there is a will there is a way, try this to get you out of trouble……Try this: OSR Ruling 30 Section 55 part 1 ( (11) -Read below, All you require is a paper trail as required at the end of this section, (b) a transfer of dutiable property from an apparent…[Read more]

The three points I mentioned where very relevant, in the one you have mentioned, if the person has extra cash- Where do you want them to park this?????? I would like to offset this with existing investment loans. Anyway, I am not trying to educate you, but suggesting there are many ways to skin a cat.http://www.birchcorp.com.au

Ask yourself the question. Did you invest to be in the property market for three years and expect to retire / be wealthy / or like. Your answer was probably NO! Did you know your own circumstances at the time and the financial situation you would be facing at the time! Your answer is Probably YES! Have they changed today??????? That is the…[Read more]

That is a rather large negative from me, think of it in terms of accounting, tax deductibility and separation of investment from personal monies.http://www.birchcorp.com.au

What is the size of the GRANNY? If <60m2 refer to the ‘Affordable Housing Policy’ that the N.S.W Govt. brought into effect in 2008, the regulations require– 450m2 block or greater- Block width of 12m or greater- Property that complies with the 149 certificateJust a thought………..As the regulations are not so rigid. http://www.birchcorp.com.au

Without knowing your personal circumstances it is very difficult to assess you in a manner that would be justified. Many people write on this site thinking they will get the solution to the property investing in a paragraph. Financial advice for the most basic of my clients takes an initial three hour consultation. The following gives you an id…[Read more]

The portfolio product can be a very good tool for wealth creation when used correctly, ANZ also have a product that is competitive- the benefit of the ANZ product is the offset account. STG doesn't allow for an offset, this can become restrictive over the long term. Consider when your PPOR is paid down. http://www.birchcorp.com.au

It is the first six months of occupation the OSR is concerned. No leasing for this period.http://www.birchcorp.com.au

This is a wonderful product if used well, it takes a little explaining. This is very good for wealth creation…….ANZ also have an attractive product – on face value they are the same, but ultimately they have notable differences. Drop me a line, or visit if you are in sydney… Nil charge of course…..http://www.birchcorp.com.au

Just a quick one,Re-distribtion of credit limits over a portfolio product that allows capitalisation of interest to improve tax deductions and ultimately pay down Owner Occupied (non-tax deductible debt). This is the obvious and simple benefit.The rest of my life story will take 4 hours to discuss never mind write…..http://www.birchcorp.com.au

Dan42,I assure you Banker is not arguing that your personal circumstances require crossing- In fact you would not even consider the idea from the information you have provided.  What you have mentioned is correct. We all have our stories. The point he is making is don't bash an idea / concept unless you have considered every angle. C/C is not…[Read more]

Banker,Finally we have someone who has the balls to stand up to popular belief,You have mentioned what is only the start in the benefits of crossing- and YES I agree with with the downsides, but as you have stated, as an adviser, all angles and approches to investments must be included. To simply rule out CROSSING, is to short change the…[Read more]

Timbo,I am at Castle Hill in Sydney if that helps, refer to the link below. Free consultation!http://www.birchcorp.com.au

Richard,May I ask why you will not write a lodoc loan from July 1? http://www.birchcorp.com.au