- vsdabhiMember@vsdabhiJoin Date: 2009Post Count: 19
I have received $18937 tax refund yesterday. I need advice. What should I do with that money. We still pay mortgage on our PPOR. One of my friends told me that add 5-6 K and buy an investment property (95% loan, property range $250K-$275K). My wife asked me to pay off mortgage ASAP.
We ahve 3 IPs. Please advice.
ThanksjmielleParticipant@jmielleJoin Date: 2005Post Count: 31
I would pay off the mortgage for peace of mind and then borrow against it so you can claim tax. You can’t claim tax off your mortgage.ducksterParticipant@ducksterJoin Date: 2004Post Count: 1,674
Put it in an offset account where balance comes of PPOR home loan interest calculation – linked to your PPOR home loan !!
Then later on if you need the $18k for something else like an investment purpose then it is on call to be used .Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
I would do a bit of both.
Stick the funds in a 100% offset linked to your PPOR and then structure the loan in such a manner that you can also buy a further IP.
Richard Taylor | Australia's leading private lendervsdabhiMember@vsdabhiJoin Date: 2009Post Count: 19
Thanks a lot.
I need to ask bank whether I have off set account. When I borrowed for my last property, bank asked me to cancel withdrawal facility. It was last year, I have to ask. Thanks for help.TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213vsdabhi wrote:Thanks a lot. I need to ask bank whether I have off set account. When I borrowed for my last property, bank asked me to cancel withdrawal facility. It was last year, I have to ask. Thanks for help.
If you have to ask then you probably don't have one – you should know about it.
Always pay off private debt first and then reborrow to invest. You will have the same amount available but more deductions.