offset account

[scott]

Have I got this right?
$10,000 in a 100% offset account against PPOR at 6.5% mortage rate equates to a 6.5% tax free return on the 10k.

So any other investment for that 10k would have to be what to beat it assuming on top marginal tax rate?
Any takers?
Scott

[Peter 14.7]

Actually it gets better.

Assuming top tax rate, so a nominal 50% loss to Gov, means for an investment to beat the loan offset to PPOR you actually need to earn 13%+

Also an Offset is no risk. Few investments at that level are low risk, if any. :eek:

IF you have a PPOR it is the only way to invest. Kill the personal debt. :mad:

Peter 147