Dear Len & Terry,

Thanks for your replies, its nice to get confirmation that I’m thinking along the right track.

I may have some misconceptions though regarding the relative benefits LOC & offset accounts.

What were currently doing with our LOC is placing all income from the IP & tax deductions directly into the LOC, then redrawing as needed (eg Bpay the rates etc.).

I was under the impression that an offset account used the interest generated by a separate investment account to offset against the interest debited in the mortgage account, but one wouldn’t be able to redraw from the mortgage account itself.

Whereas the LOC allows for the deposit & withdrawal of funds as needed & while funds are in the account, interest is only being calculated on the outstanding daily balance.

I wasn’t aware that the banks based their lending on the lesser of valuation or purchase price, that’s very interesting, as you say Terry, if purchasing below valuation then presenting them with a property you already own removes their option of using the purchase price.

Thanks again,

Jack

Hi Terry,

Thanks for your feedback, have you had direct dealing with John, or do you know him by word of mouth?

Is it OK if I mention you as my reference to him?

Thanks again,

Jack