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Having an intervening offset account can potentially confuse the taxation situation. I find it safer and easier to just setup a garden variety loan and leave it undrawn until you need the funds. Then draw the funds by paying them directly to the vendor (settlement agent) when you settle on the...

+1 It's also worth pointing out that in my loan agreements offset accounts can also be tapped by the Bank if they want to - of course it's unlikely unless you give them good reason to do so such as default on repayments etc. See the "all monies clause" for details. So if you want to be very...

Because if you suddenly need a lot of cash for any reason - health, family, loss of work, wanting to pounce on a fantastic investment opportunity or otherwise - it's a lot easier to just draw the cash out of an existing offset account than it is to go cap in hand to the Bank for a new loan...

Yes - forget about the amount of money for a second and just focus on the principle. The idea is to never run out of money, regardless of what circumstances life throws at you. There is no real difference between the two options we are discussing, in terms of cashflow or anything else, except...

Bayview, I can't agree with this advice. Regardless of whether you are trying to grow a portfolio or not, in my view you should always borrow if you can. I would much rather have a $1m loan and $1m of cash available to me in an offset account than just spend $1m on a property and be left with...

China has it right in my view. Use as much leverage as possible and keep as much of your own cash as possible. It buys you time in the event things turn to custard. Use the Loc for deposits and stick the cash in an index fund is another way or put the cash into an offset account for whatever...

It was a few years from joining the forum to settling on our first CIP. Since then have had a few deals fall through for one reason or another. Still hoping to get CIP#2 soon. When I joined we had a reasonably history of bog standard RIPs and PPOR equity. Sitting on that equity we were...