Hi Steve

Thank you for your taking the time to reply.  Yes 2002 wow how time goes by.

I did start with a clearer vision to what i have now.  I did start the journey etc.  Then as life does it takes its turns

with Marriage Break up / GFC / Some health issues at the time / Employment issues / Entrusting Financial Adviser (that was a major set back), i probably am lucky to be where i am asset wise, even though still carrying considerable debt.  Despite the set backs i was able to hold on to what i have described in my post.

Looking forward i am probably looking for honest guidance.  Some people can see things i cant but once explained it then seems obvious, (Of course what couldn’t i see that).

At my age and debt, borrowing capacity has dwindled with my current status.

The only option at this stage that i can see is that i have to sell to reduce debt and start moving towards being debt free in retirement.  However i am open to ideas.

Unfortunately unable to attend the Adelaide 14th October due to another commitment.  However there may be another opportunity.

Thank you again for responding

It just seems difficult to find someone to sit with, and start to work out best way forward.

Regards

SG

PS i did buy the money magnet. Great Read.

Hi Terry

I have heard of that case myself but the name escapes me.  This is my thoughts also in regards to drawing down LOC investment funds to park in savings account offsetting a Loan for personal use.

This is how i read QLDs007 reply in the draw down that was explained into P&I loan.

Cheers
SG

Hi

I would probably prefer to see the LOC funds drawn down into the offset account and the monthly interest come out from there.
Just some finer point re ATO. 
If my wages and all my personal bills are paid from this OFFSET account and also my rents and my investment properties bills are paid from the same account  Isnt this then mixed if i draw down the INVESTMENT  LOC amount into the OFFSET account.  The draw down would not be for investment purposes….

For the purpose of discussion if i kept my PPOR as is and stayed would i then would this set up require 2 offset accounts one for PPOR and one for INVESTMENT PROPERTY.

Am i missing something here?

Cheers
SG

Hi Crashy

Where i am blocks can be right down to around 300sqm even a bit less in some cases frontage aound 10m.   A block this size around 8km from CBD is around $600psqm round figures.  Closer is more of course.

 I had a 100sqm block recently valued at $200,000 in heart of CBD. 

Cheers
SG

Hi all

I seem to have 2 threads of the same title not sure how this happened….lol

Thankyou for the replies much appreciated.  This is my thinking and i can be corrected as i am only tossing around ideas.

Buy property with say 800sqm block
Resident already on it
Providing all is well and the numbers look good.

split the land and sell one block.
eg property cost $400,000
rental $400 a week
80% loan so $80000 your money
sell block approx $250000
pay $80000 back to myself so my money is out of the deal.
reduce the $320000  @ say 8% loan to where it is neutral cashflow so it cost me nothing to hold ,and keep the rest of the money for other things

$250000-$80000-$100,000 leaves approx $50000 to myself this is after all costs etc

Loan now 220,000 not cost to hold.

Thats my thinking.

Tear it apart no problem.

Cheers
SG

Hi
see how i go this time otherwise an email maybe a good idea..lol You have thrown me a little bit.

I was under the impression that the LOC for your personal purposes was not drawn at all.
No problem this is the LOC that has a LImit of $25,000 sorry not 20,000 as i mentioned before.
So the mortgage is for $85000  this is the home loan interest only variable with offset account
The LOC( A) is seperate account  and is split  this one for personal with a limit of $25,000 with $15000 drawn  So still have $10,000 if needed
The LOC ( is for investments so tax deductiblle

If this is not the case the convert this to a P & I loan and link the offset account to this loan and not your IO loan on the same property.
If you are suggesting turning the LOC (A) to a P&I loan linked to the offset could you explain your thinking here as i cannot see why i would do this. Don't think i would get a P& I loan for $25,000

To my understanding $85000 is the amount that i can claim interest on i cannot increase this?

Make sure that the loan for personal purposes is totally separate to the loan for your shares.
Yes i am aware of this

Have ALL of your income going into the offset account liked to the separate P & I loan which you used for personal purposes.
Yes understand this but refer to previous query re P&I loan.

See how we go this time..lol

cheers
SG

Hi again

Thanks for your replies Qld007 appreciate this

Just to be sure here:
Current.
Mortgage Loan Interest on PPOR is paid by my wages
Have a savings account/Offset set up for PPOR mortgage loan.
The LOC for personal use is half drawn
My wages pay for my:
PPOR interest
Personal LOC interest
Inv LOC interest as i have bought shares with this and incurring interest but do no want it to capitalise.
My wages go into the Offset account .

The IP
Have the Mortgage Loan
The LOC not drawn at this stage

What my thoughts are and i could be wrong:
With a LOC if i buy another IP and there is a shortfall the LOC picks it up and so may capitalise slightly.
If i have a OFFSET a/c then if there is not enough in there i may get caught.

I am looking at this incorrectly?

Cheers
SG.

On the basis that the LOC non dedcutible debt is not drawn at all get your lender to link a 100% offset account to the IO loan and have all of the rents and your salary going into this account.

Hi again this is interesting i was under the impression that the rents had to go to the account that is used to pay the loans etc.

Currently this is from the Investment LOC this pays the loan and the rent goes into here.  Would the ATO question that the rent money is not going into the account that is paying the Loan interest.

The val on my PPOR was very recent.

Cheers
SG