Hi Jamie,I only have one property. This has been an IP while I rented elsewhere. I then moved into my IP making it a PPOR for the last few months. I now plan to move out making it an IP again while I again rent elsewhere. All the time I have had a principal and interest loan with a redraw facility on this property. I have managed to pay extra…[Read more]

Thanks to everyone.It's clear to me now.I have used redraw many times since first establishing the loan and I reckon I would be pretty unlucky to get an ATO auditor to be so meticulous as to go through everything.I now plan to convert existing loan to offset before using the extra payments for deposit on second IP. I will set up the second IP…[Read more]

Thanks Trish.I have not heard of them before. I checked their website out already.I add them to the list of people to check out.CheersRZ

I don't have a MISA just a standard redraw and no offset. I just wanted the least amount of features. At the time I figured that would mean that the bank would be more flexible on negotiating a better interest rate.Obviously I didn't know back then about the way the ATO treats the use of redraw funds when coming to claiming interest deductions.…[Read more]

EV:  My situation involved IP –> PPOR –> IP conversion with personal use of redraw in between so I think you're definitely right. It is time for me to get professional advice and start buiding the "critical" team of people around me that people so often talk about. Makes sense.Jamie:0.9% beats 07% any day of the week. I'll be interested to see t…[Read more]

Hi Michael,Thanks for taking the time and the detailed response.I was sort of thinking that I may have done the wrong thing. Oh well, live and learn I guess. That is the beauty of this forum. I can benefit from others knowledge and they can benefit from my errors…. They rate discount of 0.7% was what I obtained 6 years ago and I expect you are…[Read more]

Hey DWolfe,Not really sure why Jellis Craig or Marshall White to tell the truth. They just seemed to me to be a couple of the bigger players selling real estate in the Hawthorn area so I guessed they may be popular among other IP owners who might use them as PMs. I have not considered a smaller agency in the past but I guess you are right when you…[Read more]

Thanks for the quick replies. Always nice to know someone is out there.I haven't even thought of renting out the 2nd room……..pretty obvious to some I guess but after years of single living common sense becomes less common. Definitely the easiest way to reduce costs.The place is a little tired after 5 years of being rented out so will…[Read more]