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Wow…I never new I could do anything like that. I do have a financial adviser and this method was never mentioned.
By the end of this month, I will have been self employed for two years earning on average circa $130k gross but its only over the last year, that I have started to think more about my families financial future through investing. By renting ourselves, I did not want the difference in our repayments to be not doing much and wanted to invest this money and make it work harder.
I will now go back to my FA. and let him know that I am open to this different form of borrowing to invest and see what he says.
Thank you for opening my eyes.
Terryw wrote:Hi N,Good. But the $100,000 for the shares, did this come from your offset account?
If so you are not doing it tax effectively.
Yes it did. It was living in my offset which we use to pay off the credit card and any other day to day expenses. I’m guessing I should have spoken to my accountant before doing this? Oh there’s so much to learn.
Thanks for highlighting a different way of thinking.
Thank you for your replies.
Terry – No. The extra money remained on the loan. And over the last year all our savings have been going onto the offset. We have just released $100k into our share portfolio to spread our risk.
We owe $230k and we are paying interest only. The IP income covers the repayments and we have some left over.
Your last paragraph sounds like it’s gold…and i wish I fully understood what it meant. I will look closely at your suggestion and start to learn more about this exciting prospect.
Hi Alf1
I may not have explained myself clearly. I am not looking for another mortgage package (at least not yet anyway ) more along the lines of staying with the same bank and opening up say…another account were the IP income and expenditures go in and out of. I am very new to the whole process but have learnt many lessons in life to understand that a correct setup in the beginning will save a lot of work and less hassle in the end.
I can certainly appreciate when I have more IPs that the financial model will be completely different yet again and I would certainly seek your service in this area.
Thanks again
