I should also clarify that the 1% extra was charged if I wanted a separate offset account .
If the loan account is an offset account there is no extra charges.

qwerty

My bank charges 1% above the standard interest rate for an offset account.
Do you think that the 1% is a fair trade off for the flexibility it gives you ???

It seems that one of the most critical components of an IP the finance structure which may be different for each person.
I am finding it hard to get some good info on finance structure as banks will try to sell you their product & are not financial adviser’s , on the other hand some Financial adviser’s want to sell you products as well !!!!!

It seems that the best thing to do is to create a plan & stick to it as best as you can.

Jo
I had a bit of a look last night & it looks like another great forum.

Thanks [thumbsupanim]

Originally posted by Derek:

Derek

I have read a number of books on property investing & they either support -ve gearing or they trash it so things can get confusing.
Do you know of any resource available that supports Offset gearing as this seems to be a great strategy.

landburn

I am in the highest tax bracket & have an IP which I am wanting to rent this IP will be positively geared which means approx half the profits go to the tax man.
Your opinion is that it is better to make $100 profit than to minimise my tax as the $100 is passive income.
It seems to me that positive cash flow is associated with a positive attitude eg I will make $100 profit.
While negative gearing is associated with a negative attitude eg I don’t want to pay more tax.
It takes allot to change ones mind-set especially when the accountants are advising you to make a loss.

The rules say if you earn x amount you will pay x amount in tax , you can just accept it & pay the tax or you can legally work around these rules to try to minimise your tax but is the price for this your financial freedom as it would seem that reducing tax ties you to your job ????

Thanks for the reply’s , I have learnt a new work “Offset Gearing” .

I haven’t read anything about Offset Gearing , the books that I have read are pro negative gearing or pro positive cash flow.
It’s great to get feedback from people with experience & are willing to help.
I will do some more research !!!!!

My accountant seems to have a strategy that will save me some tax by restructuring my IP ( selling IP to a trust ) , this will also position me to be able to purchase another IP with similar benefits.

It all sounds good but I wounded how it will work in practice ???[worried]

I finally arranged for a depreciation schedule .
The people I spoke to were very helpful.
Some data needs to be collected before an appointment can be made , this is done via the Depreciator web site.
I found all questions were clearly written & could be easily answered.
On the same day that all the info was supplied I received a phone call which was to progress my job.

So far I have found the Depreciator to be professionally run organisation.

Thanks Scott [thumbsupanim]

I have lodged an enquiry to try & find out if there is a resource available to check if complaints have been lodged against Estate Agents in victoria.
As I find information I will post it.[thumbsupanim]

http://www.consumer.vic.gov.au/cbav/fairsite.nsf/pages/of_enquiries

I have found a VICGOV site which has quite a bit of information.
It has a section titled ( Being a Landlord )
which covers what forms need to be completed plus Landlord obligation.
I think it’s worth having a look.

http://www.land.vic.gov.au/land/lcnlc2.nsf/childdocs/-3DCD6E932629689A4A256A0A00194577-988051AEA8D7A5684A256A0A00186FA2?open