Thank guys for the input.
I have learned a lot of new things esp on loans these last 2 days through this forum. However, I still think that I don’t have my initial question answered; in our situation, shall we pay off our homeloan completely first (or at least half) or buy another cf+ IP?
Any input (but please don’t say,’up to you’) will be most…[Read more]

Offset accounts are always best used against non-deductible debt. I think you have got it.

At present, my home loan has no offset account. Instead, it’s a basic loan with redraw fasility.
Will it be ok? What is the drawback?

Regarding your thinking, it comes down to what you want. If you want to improve your cashflow, negative gearing should…[Read more]

If you use your cash in the offset it will not be deductible as you are paying cash and you will increase your non-deducible expense. This is a bad idea.

This is new to me. Thanks. [cap]

As outlined earlier, you should have another split loan for deposits and expenses for deductible expenditure. This loan should also be interest only so you…[Read more]

Originally posted by The Mortgage Adviser:

You do not need to refinance anything to buy additional properties. Even if you have a fixed loan, you can add a split loan if you have additional equity. The new property can stand alone.

This ‘basic’ info is new to me. Thanks a lot, Rob(?).

I say stay away fro LOCs and stick to the simple stuff.…[Read more]

Originally posted by Mortgage Hunter:

I would consider IO for all loans and have an offset on the PPOR for all cashflow and savings.

Do not use this offset for anything except undeductible debt – ie another PPOR, car etc.

Simon, can I use the offset for deposit and the purchase cost for my next IP?

If you decide that your PPOR is your home…[Read more]

Thanks for your input guyz.
I know I should not have listened to the bank loan officer when he asked me to xcolled the loans. My PPOR then was worth $200K and I owed $135K. Nonetheless, I still got $25K which was enough to buy the 1st property. However, despite the dis, I thought I got the advantage on the Xcolled loans as I didn’t have to…[Read more]