Forum Replies Created
Yes indeed. I've already told my younger brother all about this – putting surplus funds into an offset account and not onto the mortgage, and convert from P&I loan to IP loan as well if possible and cost-efficient to do so.
Thanks heaps guys! This is incredibly helpful and critical towards my current decision-making process
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
@dan: yep I could remain in my current residence for another year or two, but keen to move at or before the two year mark.
@terry: indeed. I have done those sums and the sums say sell
I hate that. I like the rule of never sell. Such a waste of stamp duty, legals and selling fees! I was kind of hopeful someone would spring up with some innovative way to hang onto the current place and move into the new one, without getting stung on the taxes as you say. I finally understand that I cannot expect to borrow against current PPOR to buy new PPOR and expect to deduct interest on current PPOR even though it would be an IP. Reason being the borrowings would be for a new PPOR which is not an investment item and thus no deductibility. What I still do not understand is: let's pretend my current PPOR had been interest only from day one, and therefore the full principal amount were still owing (albeit with a huge pile of cash in the offset). If I then withdraw that offset money to use for the new PPOR, would the debt on what is the current PPOR (converted to IP) be deductible? It is a debt…. the original purpose of the loan I took out was for PPOR purposes…. but by declaring I now want that house to be an IP would that debt's mortgage interest suddenly be deductible??? Seems weird…Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Woo hoo!!!!!! Well done! You are on the ladder and now you shall prosper
Don't discuss it with those not interested in investing. They'll say all sorts of things to make you doubt yourself. Remember how much research you have done to assure yourself that it is a good idea, and talk to such folk about other topics such as cinema. Don't let them mess with your confident investing mind Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
It's a pleasure to entertain
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
propertyboy wrote:This states otherwise
http://www.echoice.com.au/mortgage/home_loans?pn=/info/home_loan_types/offset_account.htmlInterest you make offset by interest you pay
Therefore, bank could essentialy make a "margin"
What in the article has brought you to that conclusion? I don't see it
This article seems to be about a P&I with full offset, rather than an IO with full offset.Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I'm happy to pay asking price if it is still a good investment and the numbers stack up. Better still if I can get it on a long settlement which saves money on bank interest anyway
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I hate that. I like the rule of never sell. Such a waste of stamp duty, legals and selling fees! I was kind of hopeful someone would spring up with some innovative way to hang onto the current place and move into the new one, without getting stung on the taxes as you say. I finally understand that I cannot expect to borrow against current PPOR to buy new PPOR and expect to deduct interest on current PPOR even though it would be an IP. Reason being the borrowings would be for a new PPOR which is not an investment item and thus no deductibility. What I still do not understand is: let's pretend my current PPOR had been interest only from day one, and therefore the full principal amount were still owing (albeit with a huge pile of cash in the offset). If I then withdraw that offset money to use for the new PPOR, would the debt on what is the current PPOR (converted to IP) be deductible? It is a debt…. the original purpose of the loan I took out was for PPOR purposes…. but by declaring I now want that house to be an IP would that debt's mortgage interest suddenly be deductible??? Seems weird…
This article seems to be about a P&I with full offset, rather than an IO with full offset.
