hi there
I'm considering purchasing my first property (FHB) with my partner. We have a good 20% deposit (excluding the grant) and are looking at townhouses or units/apartments in the low $400's. We plan on living in this place as a PPoR for a couple of years before renting it out & buying a new PPoR but just have a question regarding the deposit:
I wish to make as much in extra repayments over the next 2yrs into my home loan, then when it comes to buying again, I want to pull out this extra repayment cash from my first place to use as a DEPOSIT for the 2nd place.
>>Is it true that by doing this, if you only have a "redraw" account (not an "Offset acct"), then you are financially disadvantaged? (i.e. for tax purposes, now that the first place is an IP)
I was leaning towards a Bankwest rate-tracker, or probably an ING 5.03% - both of which are only "Redraw" loans though... Should I be looking elsewhere for an offset functionality (and hence be forking out an extra $350/yr in fees)??
^AND any recommendations would be much appreciated! (I see that my 2 bank options don't currently have offset options?!)
I'm considering purchasing my first property (FHB) with my partner. We have a good 20% deposit (excluding the grant) and are looking at townhouses or units/apartments in the low $400's. We plan on living in this place as a PPoR for a couple of years before renting it out & buying a new PPoR but just have a question regarding the deposit:
I wish to make as much in extra repayments over the next 2yrs into my home loan, then when it comes to buying again, I want to pull out this extra repayment cash from my first place to use as a DEPOSIT for the 2nd place.
>>Is it true that by doing this, if you only have a "redraw" account (not an "Offset acct"), then you are financially disadvantaged? (i.e. for tax purposes, now that the first place is an IP)
I was leaning towards a Bankwest rate-tracker, or probably an ING 5.03% - both of which are only "Redraw" loans though... Should I be looking elsewhere for an offset functionality (and hence be forking out an extra $350/yr in fees)??
^AND any recommendations would be much appreciated! (I see that my 2 bank options don't currently have offset options?!)