Can any Finance broker please advise if i should set up a Personal Line of Credit against my PPOR or use Redraw with 100% offset. I want save on Interest is there a better way to set this up?
I have a Investment Line of Credit against my IP and i want to use some equity for personal but don't want it mixed up with the investment money.
Can you please show me how to set up correctly.
thanks
Hi POS
Would need a little more information to give you a personal answer.
My preference is a 100% offset account as usually the interest rate is slightly more attractive.
Richard Taylor | Australia's leading private lender
Hi POS
Would need a little more information to give you a personal answer.
My preference is a 100% offset account as usually the interest rate is slightly more attractive.
Richard Taylor | Australia's leading private lender
Hi POS
I'm not a finance person, but I can tell you that I've found Mike Umana at Lonsdale Finance to be very helpful. (knowledgeable, reliable, quick to act in pulling together finance options and happy to go the extra mile to help out). I'm sure if you contacted him he would be able to give you a hand.
[email protected] or 0427 532 288
Best of Luck
The most important thing is to not mix business and pleasure with your loans. So if you redraw on a personal loan for personal reasons, it should be ok as you cannot claim the interest anyway. But if you use your investment LOC for personal stuff as well as business stuff, then it will be complex to calculate the correct amount of interest you can claim.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Depending on the size of your LOC used for you investment property, you can theoretically and legally charge your loan interest to the LOC account for a period of time provided you have enough equity and then use the rent generated from the IP to purchase you personal item(s). You need to be confident that the extra interest and loan balance accumulating in your LOC does not leave you in a negative equity as some stage in the near future. I have been told by my accountant that this is legal but suggest that you also obtain your own advice. I am currently investigating this option as I want to purchase a new PPOR and want to use some or all of my rent to help quickly reduce the loan amount. As the LOC is used for investment expenses you should then be able to claim the interest as a deduction, while using the rents to save you money on your personal item.
Hi Pos,
I would be more than happy to have a discussion with you regarding the pro's and con's of what you are talking about confidentialy. Please feel free to contact me on the details below at anytime to discuss.
In a nutshell though, I have to say that I totally agree with Terryw's comment;
"not mix business and pleasure with your loans", as many accountants or like minded people would agree, it can get very tricky when you have to apportion interest, and is a lot easy if there is a clear distinction between the 2.
Kind Regards
Robert Crick
Commonwealth Bank
Robert Crick
Manager Personal Lending
Ballarat Branch1 Lydiard Street South
Ballarat VIC 3350
M: 0420 304 532
P: 03 5337 7564
F: 03 5332 1262
E: [email protected]Our vision is to be Australia’s finest financial services organisation through excelling in customer service.
Wow is there a limit on how big your signature can be here.
Maybe it gets bigger with each post !!!!!
Richard Taylor | Australia's leading private lender
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