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thanks redwing

reading re-assessing strategy and finding it very advanced/difficult.
lot to learn, as always :)

ta
 
Thanks Redy will have a read!

Might say while I'm in here what a great forum this is. The functionality the animated pre-loaders, subscriptions the photo's and the best is it actually keeps you logged in I cannot fault it anywhere it's a great credit to the web designers/organizers of the site.


They say familiarity breeds contempt but it seems all right so far.
 
Hi all,

I'm looking for a great thread out there describing have a good amount of equity in a PPOR and then using that equity through a redraw or LOC to put down a deposit on an IP, and therefore the interest on that redraw would then be tax deductible? I've been searching for the past hour and can't find the one I'm looking for :(

Was chatting with my sister-in-law tonight and she was talking about needing to invest her money while still trying to reduce her hefty tax bill and she was talking about buying an IP. She was saying the loan on her PPOR is split 30% variable with an offset account and 70% fixed - and that her offset account was at a point it was higher than the loan amount it was against, and so those excess funds were doing nothing. So then she was saying that she was thinking of using the funds in her offset account to put down as a deposit on an IP (thinking that the interest she would then have to pay on the PPOR would still be manageable).

I suggested, why not keep those funds in the offset account as pulling them out would mean the interest she was paying on the PPOR wouldn't be tax deductible - and instead take out a redraw or LOC on the equity in her home, put those funds towards a deposit, and then that portion of the interest would be tax deductible. She didn't seem to believe me :D I know I've mentioned that to her before, that if she redraws and uses the funds for investment purposes only, that part of the interest will be tax deductible, and yet we seem to go around in circles. So I'm looking for a great thread I can show her that explains it clearly, as I'm obviously not doing the best job :eek: :D

Thanks all!

Cheers,
Jen
 
Jen, why not search in the "finance" forum, or start a new thread.

My 2c is that you are right, open a new LOC and use that for an IP investment. The offset will come in handy if they ever make their current PPOR an IP. The excess funds in the offset is another matter, but it could be put into super or wait and change the 30:70 offset split when the fixed period ends.

cheers :)
 
There should be a fair bit of scattered information concerning your query in the Forums JenD; I agree though with MDK92, it may be best to post as a new question and get some replies from the great Brokers and other Investors here more specific to your post..plus you can ask other specific questions.

PS- I agree with you as well ;)
 
just read karina's thread about "5 years" as wasn't around the first time.

very inspirational stuff - makes me feel like a slacka** - and very tempting to deviate from the path i've set down to look at lower cost areas ... i will be strong and follow what we've choosen, but doesn't take a thing away from karina's achievements!!

okay - so i'm a tiny bit jealous too, of her starting young, just before a major cycle and living at home ... but am thrilled for her just the same.
 
okay - so i'm a tiny bit jealous too, of her starting young, just before a major cycle and living at home ...
Lizzie,

Dont forget you have a great partner earning 100k a year to help support your endeavours while you invest, while Karina was doing it all alone. Can't imagine you'd prefer to be living at home with your parents and doing the same :D

I personally think you have no need to be jealous, and you're both equally worthy of kudos for such huge achievements in your own rights:D

All tbe best,

Jamie.
 
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