Interest Only with Offset explained

Viewing 9 posts - 1 through 9 (of 9 total)

Jamie Moore
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@jamie-m
Join Date: 2010
Post Count: 5,069
October 2, 2011 - 10:34 pm
Hi guys
I just wrote a blog entry on this topic that some might find useful – it's available here
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone Me
Mortgage Broker assisting clients Australia wide Email: [email protected]
LilliputBrain
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@lilliputbrain
Join Date: 2010
Post Count: 2
October 3, 2011 - 4:49 am
Well, I’ve lived up to my Lilliputian Brain name by managing to mess up posting a reply. This is third time lucky! Thanks, Jamie. It’s a little too late for me as there’s very little left to pay on my PPOR, but I’m forewarned now and will be able to advise younger family members. I appreciate the time you took to explain the concept so clearly.
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
October 4, 2011 - 7:45 am
No worries at all – I'm glad you found it useful.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone Me
Mortgage Broker assisting clients Australia wide Email: [email protected]
MJP
Member
@mjp
Join Date: 2011
Post Count: 20
October 6, 2011 - 12:25 am
Thank you Jamie,
I appreciate your blog too! It is so clear.
MJ
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
October 6, 2011 - 5:46 am
MJP wrote:
Thank you Jamie,
I appreciate your blog too! It is so clear.
MJ
No worries at all. I like to keep things simple. That entry might be used by API magazine in their upcoming newsletter.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone Me
Mortgage Broker assisting clients Australia wide Email: [email protected]
Jamie Moore
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@jamie-m
Join Date: 2010
Post Count: 5,069
October 13, 2011 - 9:29 am
Jamie M wrote:
That entry might be used by API magazine in their upcoming newsletter.
The condensed version that made it to API is here for anyone that's interested.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone Me
Mortgage Broker assisting clients Australia wide Email: [email protected]
Marmel
Member
@marmel
Join Date: 2011
Post Count: 7
October 25, 2011 - 9:08 pm
Hi Jamie
I can't quite find the exact answer I am looking for so I hope you can help me? We currently have an 100% offset account attached to our PPOR (Interest only) which is an IP. It is our first investment property and we are planning on purchasing our second IP sometime next year while we keep renting ourselves.
My question is: Do we put all of our savings into the offset account or just the savings we intend on using for the next purchase? I am wondering if there will be any issues tax wise down the track if we put money in the offset that is not used for the next investment purchase.
I apologise if this seems like a silly question but I want to get this right from the start. (I have been one of those lurkers that was mentioned in a previous thread who has been quite shy to ask questions )
Regards
Marmel
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
October 25, 2011 - 10:18 pm
Hi Marmel
Thanks for your question.
I'm a little confused about the first sentence which mentions your PPOR also being your IP?
How I like to structure things is have every loan set up as IO (PPOR and IP loans) with an offset account against the PPOR loan. Any spare cash then gets parked in the offset.
When it comes time to buy your next IP, you can either look at tapping into equity (if available), using some funds from the offset or a combination of both for the deposit. It just depends on the available equity at the time (and a few other factors).
Does that help?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone Me
Mortgage Broker assisting clients Australia wide Email: [email protected]
Marmel
Member
@marmel
Join Date: 2011
Post Count: 7
October 26, 2011 - 2:43 am
Hi Jamie
Thank you that does help.
Marmel