LouiParticipant@loui80Join Date: 2016Post Count: 13
My partner is moving in with me and is renting her ppor out. She is also wanting to refinance her loan to another lender. If she borrows 80 per cent of 600k even though she owes 270k is she best to fully draw loan and put remaining in offset? Or just get a 480k loan and leave funds in redraw? Can she only claim the 270k until the 210k is used for an income producing asset? I think offset is the cleanest but just confirming.
ThanksLouiParticipant@loui80Join Date: 2016Post Count: 13
Sorry guys further to this partner just told me broker last year did a 152k top up as a seperate investment loan and put the funds in an offset account. Was this correct? Irrespective what would be ideal loan structure from a tax perspective based on a 480k being sought now?
Many ThanksTerrywParticipant@terrywJoin Date: 2001Post Count: 16,190
Best not to park borrowed money in an offset because the interest may not be deductible when used.
If the $270k loan relates to the property purchase the interest on this may be deductible when she rents this out.