Search results

Instead of having your PPOR loan around 40% LVR, why not just borrow 80% and keep the spare cash in the offset. This way if you move out you will be able to claim the interest on the 80% LVR - double what you otherwise would.

Give him an example. eg. You: Imagine if we bought a house for $500,000 and rapidly paid it off. Him: All good. Y: But what if the house became too small? H: We would rent it out for $500 pw and buy a new place. Y: $500 per week is $25,000 per year. Tax on this would be around...

ah I see. Well you still have plenty of time to convince him. Do it slowly step by step.

Loan can be under either or both names - but wouldn't affect much. Why pay it off if it could be used as an investment? I'd suggest a IO loan with offset.