Thanks for clarifying re: paying directly from loan. I can only assume you are assuming this is done through the + balance in redraw.

And thanks for clarifying the rest – my thoughts exactly!

Sorry, could you elobrate please.

You mention that money from an offset account would not be tax deductible, of course – but if you have a $100k loan with $100k in offset and you withdrew $20k to pay (as an example) a contribution toward your development, would the interest then not be tax deductible on the loan?

I’m trying to understand why…[Read more]

Thanks guys.

So providing the home (owner occ) is paid down to $0, the client uses this property as security and applies for a LOC for investment purposes then (in the example I gave), the total portion is tax deductible BUT if the home loan has not been paid down then it would be advisable to have two splits – standard loan for remaining…[Read more]

Hi all,

What are the advantages/disadvantages of using a LOC which is secured against an O/OCC property to put a deposit on a development site + drawing on the LOC as funds to contribute to the construction? I.e., deposit for land + build from LOC and remaining funds to complete from the loan which is secured by the development site (no…[Read more]

Hi all,

What are the advantages/disadvantages of using a LOC against an O/OCC property to put a deposit on a development site + drawing on the LOC as funds to contribute to the construction? I.e., deposit for land + build from LOC and remaining funds to complete from the loan which is secured by the development site (no…[Read more]

Thanks Corey,

I understand and we will look into this.

A myriad of reasons Richard. As I’m sure you are aware, being in the insutry for quite a while:
a) many people do not understand the process involved
b) HNW individuals focus on their own occupation and have no experience in developing
c) provides a second income stream
d) cashed up but time poor
the list goes on…
We are currently looking after…[Read more]