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  • Profile photo of Christos76Christos76
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    @christos76
    Join Date: 2012
    Post Count: 9
    January 17, 2013 - 11:16 am

    Hi Terry,

    Thanks for the reply.

    Could you please explain what IVA or part IVA is?

    C

    Profile photo of Christos76Christos76
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    @christos76
    Join Date: 2012
    Post Count: 9
    November 29, 2012 - 10:41 pm
    Profile photo of Christos76Christos76
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    @christos76
    Join Date: 2012
    Post Count: 9
    November 29, 2012 - 10:40 pm
    Scott No Mates wrote:
    If you had any works done to the house the invoice possibly puts it as the mailing address.

    Thanks. Would that be useable as evidence as far as proving to the ATO that I was living there?

    Profile photo of Christos76Christos76
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    @christos76
    Join Date: 2012
    Post Count: 9
    November 29, 2012 - 10:34 pm

    Thanks but the addresses are fictional….

    Profile photo of Christos76Christos76
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    @christos76
    Join Date: 2012
    Post Count: 9
    November 4, 2012 - 11:35 am

    Thanks for your advice.

    Terryw wrote:
    Christos76 wrote:
    … and transferring all my redraw into the offset to make sure I take full advantage. My plan is then to use my offset to put towards paying off a PPOR loan which I will take out when I find a place I want to live in and then purchase.

    …

    Don't do that!. You would have containinated your loan. = disaster.

    Hi Terry,

    I'm not sure what you mean about contaminating my loan.

    Heres my plan.

    1.  Have a $400K IO loan with offset account (containing $100K) for my IP, meaning I only pay interest on $300K.

    2. Find a house that I want to purchase to live in.

    3. Take out a separate mortgage on this new home as P&I. I will aim to pay this down as much as possible as quickly as possible as it is not a tax-deductible debt.

    4. Remove my $100K from offset on my IP mortgage and use this to pay down the home loan, thus maximizing my tax benefits.

    My understanding is that the whole amount of the $400K loan on IP will still be claimible as a tax deduction because of the way offset accounts work.

    I hope I am correct in this assumption.

    Thanks for your advice.

    Chris

    Profile photo of Christos76Christos76
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    @christos76
    Join Date: 2012
    Post Count: 9
    November 4, 2012 - 2:20 am

    Hi all, 

    Thanks for your input.

    My current IP is on a P&I mortgage where I have a significant amount in redraw which is reducing the interest. Based on the responses above, i will be switching my mortgage on my IP to an IO with an offset and transferring all my redraw into the offset to make sure I take full advantage. My plan is then to use my offset to put towards paying off a PPOR loan which I will take out when I find a place I want to live in and then purchase.

    This got me thinking about taking it a step further and re-mortgaging my investment loan to borrow as much as possible against this IP and keeping the extra funds released from the equity in the offset and then pulling all that out towards the purchase of a PPOR. My follow up question is can I do this since I will be using the offset for non-investment purposes, or will it be OK as long as the re-mortgaging on the IP loan is complete before purchasing the PPOR?

    If that is allowable it seems that would make the most sense as I would be taking the maximum equity out of the IP, using it for PPOR, and therefore maximizing my tax benefit. At least that is what I was thinking.

    Does that make sense or is there a flaw in my logic?

    Thanks,

    Chris

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