Search results

And interest on $30k is about $1500 per year. that may be around $500 year year extra cash in your pocket. Pay this off the PPOR loan and let the compounding kick it. In year 2 you will have another $500 and so on.

1. Yes, only a LOC, or a loan account from which transfers to pay bills can be made. Do not transfer to a cheque account to pay or the interest won't be deductible. 2. If you pay cash for IP expenses you are removing money from the offset account. This means you pay more non deductible...

You could just run a spreadsheet working it out. You should allocate interest to each IP, but if the IPs are all the same owners if you get it wrong it won't result in any extra or less tax being paid. ps, why pay insurance monthly? Isn't it cheaper to pay in one hit - and easier.

sounds fine to me. Consider borrowing to pay for IP expenses too.

Redraw is considered new borrowings. So each time you take money out of a redraw to pay bills etc this is a new loan. Normal deductibility principals apply. If you let the interest of a loan be paid from the redraw then this is borrowing to pay interest. ie. capitalising interest.