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You can totally do this. It won't complicate things, but it will affect your return because you'll be paying less interest. But that's fine. I'm with CBA and their offset facility, MISA, is not very flexible yet, so you'll need a regular account for day to day access, then a "savings"...

TAG, I'm CBA and I set this up with my bank manager relatively pain free. I made an appointment, decribed exactly what it is I wanted and why, and he understood. Of course, bank managers are busy and they may forget things, so I suggest you get their email or direct phone number so you can...

Hi Rixter, I didn't want hijack this thread and make it about me, so I was hoping for a general answer rather than one tailored specifically to my needs. So we have the capacity to buy two IPs right now, if I applied for a LOC to be used for deposits on these + expenses (in the short term...

Can anyone offer any advice here? :confused: I'm planning to meet with my bank manager this week to initiate the "restructure". Thanks!

Can I ask a more fundamental question about this structure? When obtaining the (or several) LOC for investment purposes, what is best practise in determining a limit? i.e. should you go for the maximum the bank will allow you? Downside of this would be that you now have to wait for your...

It doesn't matter, whatever entity will allow you the highest LOC limit. For us it will be our PPOR since this has alot of equity, for others it may be an unencumbered IP. Remember, it is what you use the borrowed funds for, and not what it is secured against, that determines deductibility.

By the way, where do the LOC interest payments come from? Which account? Let's say in another 2 years the PPOR debt is completely offset by the funds in the offset account. So now you have your IP loan of 200k and a LOC balance of $42k. Now what? Start funnelling income and rent into...

Can someone proof read this example that shows how much this could save you? You are essentially introducing an ever increasing interest repayment. You need to be sure that this new interest payment is less than the money saved by having the extra dollars in your offset account. I would...