Hi Qlds007,

I have an off set account which I was using but my interst never came down. When I enquired my finacial institution they said interest only gets reduced if i start paying the principal. As you may have already worked out my knowledge about these were pretty basic and it was very hard to understand this twisted concept.

So this offset account concept would work for primary residence as well?

Where can I get more details about spousal transfer? my wife is not working and will this scenario help? what costs are injvolved?

what is unit trust?

my pay is around $120K before tax and my wife is not working, hope this gives bit more clarity about my situation and might be able to answer my question,

thanks

cha

Thanks Guys,

Great, though do not understand every bit of it atleast would be able to ask right questions now. Jamie and Nathan is there something on the web that explains my situation in simple language? can you please guide me to that, if possible. 

Thanks Derek.

I got that. but why?

Hi Qlds007,

yes, I solely own this property, what purpose does spousal transfer serve?

Thanks,

cha

Nathan,

You might start hating to reply to my queries, I am sorry mate!

Basically redrawing money is considered new borrowings. It is irrelevant where it comes from.. if you use these newly borrowed funds for anything of personal use (PPOR, Car, holiday  etc.) than you would not be able to claim the tax benefits.

I with drew money for personal use from my PPOR 6 months ago, the balance goes up say upto $269K. 6months down the track I will buy a house and want to use the money which I with drew a year ago for my initial deposit, what happen then?

I had transferred $200k from my PPOR to my savings account 6 months ago, the balance goes up say upto $269K. 6months down the track I will buy a house and will not use the money initially for my house deposit. At this point of time if I make my unit an IP, can I claim negative gearing?. One year down the track I will transfer $200K to my home loan which is my PPOR, can I still claim negative gearing on my IP?

Thanks,

Cha

Josh,

I was under the impression that the appreciation of property have 7-8 year cycle. Which hasn't really taken place in my situation. But the option of making my existing unit a IP was based on the charges that I incur If I purchase a new IP. like solicitor fees, stamp duty etc..

Thanks cha