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... another one gone, and another one gone....

If you're simply drawing down on the LOC when you need to make IP related payments, and passing them through this account in the process, then I don't see too much of a problem. If you're intending to drawdown a significant portion of funds and park them in this account, I'd have to ask why...

As has been said in the above posts, the general clause you'll find with an offset account is that it doesn't "earn" any interest, so there is no benefit having any surplus funds in that account, over and above the attached loan balance. The general rule of thumb is that you don't exceed your...

I always find it intriguing that people from others states bury suburbs the likes of Salisbury and Elizabeth. While I wouldn't choose to live there, I certainly wouldn't be ruling them out as potential investment areas. As per the Davoren Park thread, the areas north of Adelaide are...

I know in South Australia where there is a matrimonial breakdown, the home can be transferred to one of the parties involved with a pay out from the other party (for whatever agreed amount) that incurs no stamp duty. This involves a transfer of title and will require the mortgage to be...

Well at least now you know, beekay! As we thought. And on a side note, don't let people push you around or think they're better than you just because they're older. It doesn't always mean they know more about what you're trying to do/achieve etc. Cheers BR

I was going to ask a similar question. Redsquash, while it may appear simple to you, there is actually very important information missing from your question. In saying that, I would recommend not mixing loans as described, particularly if Loan 1 is personal debt (eg PPOR) and Loan 2 is...

Yes, the MAV pack is CBAs professional package. That's what I was referring to. The suggestion to get a split and pay it down using your savings is to reduce your NON-DEDUCTIBLE debt. By redrawing from that split and using it for investment purposes, it becomes TAX DEDUCTIBLE. This is how...

Newbee, There's no reason you shouldn't be able to get up to 100% finance for an investment property in your situation (unless you've got a mountain of personal consumer debt), although you have to consider LMI costs etc and whether it's worth it . You've got a myriad of options available...

Lines of Credit don't have offset accounts attached to them as a general rule. They're a similar beast. If you want an offset account, generally you need to have a variable term loan, with the odd lender offering 100% offset accounts on fixed rate loans (eg Adelaide Bank, The Rock Building...

Seems that the firm aren't willing to negotiate on any level, from what's been posted. They should at least provide an itemised account, particularly if the account is in dispute. There is no disputing an itemised account if it is all legit. The only reason they wouldn't be providing one...

beekay, As I said in my previous post, an offset account is a savings account, just as any other savings account is a savings account. Would your interest NOT be deductible if you put all your income (including investment income) into your everyday savings account (which is just what an...

As you'd be accounting on a cash basis, you would declare the income receive when you actually receive it. So in your case, it is included in that financial year, just as any outgoings would be accounted for when you actually pay them. Make sense? Cheers BR

beekay, Get a new accountant, as has been suggested to others in this thread. If we were talking about a LOC, then your accountant would be on the money, but an offset account is simply a savings account that is completely separate from your loan. It does mean that you'll likely have a...

Keithj makes an interesting point, although if this all occurred in a short time frame there would be almost no disputing that the reasoning behind it was to avoid taxes (such as SD). However, I haven't actually explored the possibility of an extended transition period, but will have to have a...

I was about to say the same thing, but PT has got it covered.

Rolf summed it up nicely. The outstanding balance at the time of the transition from PPOR to IP is 100% deductible, providing there were no additional borrowings used from that property to fund the purchase of the new PPOR. Any additional borrowings would NOT be deducitble as they would be...

Agree with the sentiments above. If your accountant doesn't know the difference between an Offset account and a LOC then there is a serious problem and I'd be running away very fast... and taking my money with me. You're clearly aware of what an offset is, judging by your posts. I'd...

Dropping fixed rates suggests they're planning for the RBA to cut rates in September. Fixed rates are always the first to move in anticipation, although they usually slip under the radar of Joe Public. Brokers obviously have the advantage in that area, getting regular updates from their lender...

Meow. Too many cats. Oversupply!! Much like the rabbit situation in China... resulted in the Great Wall, I hear. :p