Matt007 wrote:
Gee, do you think they could settle for only $3Billion profit? Makes me  sick to my stomach.

isn’t the point of a company (in this case a bank) to try and maximise profit?

I have to say that although I’m a mortgage holder and looking to buy more property, I can’t help but think that some cooling off on house prices is a good thing.

ryan57 wrote:
With the re-draw, am presuming if we were take out the 60k for other purposes, we could still only claim a tax deduction of Int on the current $300k, not the new bal of $360k.

That’s right, I’ve asked this question before. The point is the purpose of the redraw. It is regarded as a separate loan.

Terryw: I can see how that would help, but wouldn’t the loan situation on my current PPOR start getting very messy if I begin redrawing regularly to cover expenses on it? Or do you mean after it becomes an IP start doing that?

I understand now Dan42, the redraw is effectively considered a ‘new loan’ so the interest on that part of the loan cannot be deducted as it’s not accruing against the IP in ATO’s eyes.

Hi Richard,

Thanks for your response and your welcome The existing property is solely in my name but my partner and I are listed on the mortgage. Haven’t really considered who would ‘own’ the new property.

So I’m having a little trouble understanding. If I redraw on my PPOR now, then the balance would be much more negative. If I then convert…[Read more]