Hi ,
We have a home loan 150 k with 50 k in offset and redraw , so only paying interest on 100 k.
My wife wants the new lenders payout to be 100k.
I have argued for payout 150k and keep 50 k as cash (parked in telstra shares or similar with franking dividend)
I prefer to paydown IP slowly interest only at minimum repayments.
Is this strategy right Thanks
If you want to invest the $50K then you should pay the loan down to $100K, refinance and borrow the $50K back in a seperate account which you would use only for investment purposes, this will make claiming interest on tax far simpler.
It's wise to set it up as Alistair mentioned – that way, you should be able to claim the $50k loan as a deduction.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Thanks for your advice.
I wanted to keep my options open with the 50k . .
Maybe at some point i can use it as a deposit for another IP avoiding LMI.
I take it you may be refinancing?
You need to think of the tax aspects. Which ever way you do it the $50 could still be available but one way may mean yuo pay more tax.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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