HI Everyone,
I’m looking for some advice on how to structure my IP bank accounts
The overview is I have 2 loans. One is an equity release 20% and the other is the rest 80%. I also have an offset account and normal transaction account
From my research it is suggested that I get rent paid into transaction account. I also use this account for IP related expenses only eg maintainence, insurance, rates etc
I use the offset account to pay the mortgages
When the transaction account funds go above eg $5000, I sweep the excess funds into the offset and can use for personal spending.
As this is my first IP I want to keep things simple to begin with.
Is this a good set up or is there a better way.
Hi bargain,
below is your current [as per your desc] and an alternate option.
I use the alternate option as its less hops and investment income/expenses are separated from Personal income/expenses.
With multiple properties i still prefer using the one offset account as some investments will be slightly negative/positive on any given month and it aids with cash flow.
Note; if i have an ‘equity release loan’ and don’t utilize all of the released funds I will isolate these funds into a separate offset account for tracking purposes.
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