Probably will only help a lot if you are spending mega bucks.assuming you spent $2000 per month, at 7% the annual interest would be $140, so the daily interest would be about 38c, so having the $2000 in your offset account for an extra 10 days may only save you around $3.8 per month.

i have one of those products with westpac, and i beleive there is no minimum balance requirement on the offset. I also use their card, altitude, which includes an AMEX card with double points (but not many accept amex these days). This gives me a lot of points which i mainly use to get gift vouchers which more than covers the annual fee.

That is a loan product, so slightly different. Repayments will probably stay the same until you ask them to recalculate it, or until there is a interest rate movement and they recalc then.

You may be able to class damages under that section of the TPA if the goods supplied were of an merchantable quality.Sale of Good Act is worth a look toohttp://www.austlii.edu.au/au/legis/qld/consol_act/soga1896128/

What the exit fees, and the LMI requirements.

benno79 wrote:
Dan,I found myself in a very similar situation recently – I am also with St George.I asked my broker to explain and they told me this:"I/O payments are always based on the loan balance, regardless of the offset balance. Effectively this means when you have cash sitting in offset, the “interest only” payments that are aut…[Read more]

Trustees cannot get the grant, nor the CGT exemption.Using a trust won't help your borrowing capacity unless you can avoid giving the personal guarantee.

You will need to convey the title to her, so will need a solicitor or conveyancer. Stamp duty may be exempt in VIC. You will also need to re-apply and requalify for the loan. Legals $1000 approx plus loan discharge and app fees.

Touche wrote:
Thanks for the suggestions Terry.  I've seen an Accountant from C & N, he suggested that I should use a trust (Hybrid trust) for asset protection purposes. 

Hi TinaDid they describe how a hybrid trust would provide asset protection? And what about the ability of getting finance for one? What about the recent tax rulings c…[Read more]

Have you got quatity survey reports done on both investments? This will maximise deductions.Are both IP loans Interest only? so you can pay down the PPOR faster.

PaperChaser wrote:
What if I set the LOC up while I still have an income, have the interest capitalised, and then retire?Would the bank or the ATO find out somehow? and would they castrate me for doing it?btw thanks for all the suggestions, it makes me learn new concepts and ideas

The ATO will allow the claiming of capitalised interest if the o…[Read more]

eg. Don't know if this is still current:   Tax on dividend paid to a non-resident exempt from withholding tax as long as it is fully franked. Make yourself a non-resident and get dividend tax free. May still have to pay tax in your country of residence, but some countries foreign dividend income is tax free. Eg. Hong Kong.

yes. They will have to pay tax here and this will depend on their status, type of income and if there is a double taxation agreement with their country of tax residence.

Yes, some banks, like NAB refuse to tell you what the valuation comes in at, but then say we can lend you a max of $XX which is 80% of the valuation.

Yes, the purpose will influence the value. Valuers need to be conservative when dealing with banks as they will have more likelihood of getting sued down the track. It is normal for their to be an extra fee to get it reassigned to the bank.But it is strange that your bank is asking you to order it yourself.

You won't get an offset account in a name different to the loan so you would have to get the owner to offer an account in their name as trustee for the tenant – but even then it will benefit the owner and not the tenant.

You also want to be careful about putting all your eggs in the property basket. What about some shares with super?

Using a trust could be worth looking into, but it won't affect borrowing capacity or overcapitalising. 91% LVR is very high and risky. I would suggest you try to build up a cash buffer in a 100% offset account in case of emergency. Keep saving and wait for growth to kick in. It will be slow at first but hang in there.

PaperChaser wrote:
Hi all, I've been getting all excited about building a big portfolio so I can retire early, and then I get to the point where I realise I don't have a retirement strategy and my delusions of grandeur are nipped in the bud. Just hoping anyone can critique mine or tell me if it's possible, or if anyone wants to share theirs…[Read more]

I don't think it will work. The title of the house is in the owner's name, and not the renters so any linked accounts must be in this name also. The owner could let the renter use their account, but any benefit would go to reducing the owners interest. They could give some sort of credit for this, but it would get messy. Also problems if the owner…[Read more]