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    Did you overextend yourself buying 1st IP - Importance of Buffer

    Many thanks for your input. Lets say I have a 200k tax bill per year. On a 1 mil loan on 5% rate, it means that that I would be able to deduct the entire interest bill on tax. (50k) So it may make no sense to 100% offset and just leave the cash earning interest in savings account? I...
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    Did you overextend yourself buying 1st IP - Importance of Buffer

    Thank you Aaron and Westminster. It is making much more sense now as to what to do. I take out two loans, line of credit, interest only repayments. Hopefully, loan interest about 5.2% or less, variable. I find IP gross yielding 7%. Then I take cash from savings account and hold it all in offset...
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    Did you overextend yourself buying 1st IP - Importance of Buffer

    So if I take out a line of credit loan for 500k secured with unencumbered PPOR and use that 500k as deposit on 1 mil IP, are you suggesting that I should take 500k from my savings account and place it into offset for this loan? And then what about the second loan of 500k secured by the Ip...
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    Did you overextend yourself buying 1st IP - Importance of Buffer

    Just a quick question for my own education. Is there any role for putting cash in offset if you don't have any debt on PPOR and just have fully tax deductible interest only loans for cash flow positive IP?
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