Bingo! If only I’d cared to research it six years like Gazza!

I could easily demonstrate that I have invested in renovations for the property which was one of the points that the accountant made. Do you think that is a valid argument. I’ve spent far more on the property that what has been redrawn especially if I “return” the 55K.

htopg – sounds like a great position to be in! Unless you HAVE to move out like I do you are living rent and mortgage free so cash flow should be good and a good amount of equity.

Interestingly, I spoke with another accountant last week who backed up what the other guy told me – that I don’t really need to worry especially about the older redraws…[Read more]

Great article in the latest API from Julia Hartmann that covers this exact scenario and it backs up exactly what you’ve said terryw so thank you. She runs through the same apportioning argument you’ve suggested above – anyone wanting to know above redraw should read it.

Interestingly I went to see an “accountant” who was part of a wealth…[Read more]

Hi Terryw,

Just to clarify, I am looking to move out of my PPOR and rent myself whilst investing in further property using the 125K I have at my disposal. So in the end I have more cash in my offset account than I have ever redrawn and I intend to use it for investment. Just not sure how to prove that on the books and make my original PPOR (now…[Read more]

Now there is an interesting proposition… item C.

I have a considerable amount of equity in my home (>50%).
Perhaps there is a solution in there for my scenario.

Regards
jaiterry

Thanks Terryw for taking the time to give me that example,

That does make sense and clearly I’ve oversimplified what a mistake I’ve made. My scenario (lots of little redraws overtime) will be even more complicated than the example above! I’ll have to show an accountant my data and see if it can be salvaged.

Word of advice to everyone if you ever…[Read more]

So the current value of my loan is $325K – if I refinance to a new $325K loan I can’t claim a deductions of all the interest on this loan? I would keep the already redrawn/saved cash separate (as it is now).

What I was afraid of is that I’ve paid this loan down in the past to $274K and that would be the only amount of the loan I could claim…[Read more]

Found it – thanks Terryw

Thanks all!

Sounds like I’ve badly contaminated the loan unfortunately – but as Paullie suggests I might refinance. Since we will be turning it into an IP and renting it out I will be looking to switch to Interest Only anyway (currently P&I) so this seems logical. Please let me know if anyone thinks this won’t work.

Catalyst – definitely…[Read more]

Hi Terry,

You’re insights are great – thanks for sharing. I’m still trying to understand when a hybrid trust becomes the “best of both worlds”. For tax deductibility of the interest on the units I understand that the unit holder must have a set interest in relation to the amount of units purchased. Does that mean that once the assets grow the…[Read more]

My score was -322 but when I calculated it per the caption ( [Investment assets – Personal Debt] / Salary ) it comes out at -1.28?? Am I missing something that the real calculation isn’t that simple?

I know the message is the same (i.e. start obtaining investment assets to fund your lifestyle) but I’m a little disappointed in the way they message…[Read more]