Interest only if no debt on principle place of residence

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Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
December 30, 2011 - 1:14 am
I personally would use a LOC for the deposits, and then only pay the interest on this each month.
And then an IO loan for the remainder, secured only on hte investment property. Use a 100% offset account on this for all wages and rents.
PI is ok if you have no nondeductible debt. But, you will be paying down the loans. This shoudn't save you any more interest because you would be otherwise putting the cash in the offset.
But, I would also never purchase an investment in my own name. I would suggest you seriously look at using a discretionary trust.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Bob1
Participant
@bob1
Join Date: 2011
Post Count: 17
December 30, 2011 - 1:41 am
Thanks Terry.
Much appreciated.
I will have to check it all out before I go ahead and purachase an IP !
It's quite involved – certainly not as simple as it seems.
Thanks again.
Nathan Birch
Participant
@nathan-birch
Join Date: 2004
Post Count: 189
January 1, 2012 - 10:59 am
Saw my name pop up.
Initial purchases were under personal name and then everything is under trusts now days. It all depends on ones personal situation and goals etc…
Bob1
Participant
@bob1
Join Date: 2011
Post Count: 17
January 19, 2012 - 1:27 am
Hi Nathan,
Much appreciated.
Thank you.
J