BEST Loan Payment Options?

[redwing]

BEST Loan Payment Options?


Here’s the scenario (Properties Only)..

There are 4 x IP Loans all receiving various levels of rent and No PPoR:-

3 x IP’s Fixed Interest-Interest Only and held in personal names

1 x IP Variable –Interest Only held in HDT

We have a working account and wages and rental incomes go into this account

We have a high Interest On-Line savings account for any savings

The Company Trustee has a Cash MGMT bank account and the HDT property rents go in here and are then dispersed to the Unit Holders working account.

We then have a LOC

And a Credit Card which we use for most purchases and payments and then wipe the slate clean each month, this also gives us points which we turn into vouchers for XMAS presents and is a great record of all purchases and payments

If we had a PPoR I would use the LOC to pay the holding costs for the properties and put the rents into an Offset Account

However, as we don’t what would be the best way to structure the above?

• Maybe, have all the rents go into the LOC and have the LOC service the holding (interest etc) costs, any shortfall would then capitalize..

Any thoughts?

 

[redwing]

Just visited CORSA'S thread again as there's probably an answer in there for me..if I can apply it to my situation and searching the Forum for additional Info...