Hi,
i am purchasing a new IP for the first time and i ready appreciate some advise on my account setup.
Using my PPOR, i have setup an Line of Credit (LOC)from the CBA.
IP cost 300k. I will be paying 80% from a standard var (SVR)home loan from CBA and the remaining + stamp duty etc from the LOC. paying only interest only. Any thought on this?
I will be making a first payment on the deposit using the LOC
1. the interest that are charging from the LOC and SVR, should these interests be charged into a seperate account or charge straight into the LOC and SVC home loan respectively? my experiences that you can shared? I will be paying these off as the interest are charged.
2. What happens when the interest of the LOC are charged back to the LOC and will it make the tax accountant problematic at the end of the year? it will be interest on interest?
i am trying to get the structure right. thank for reading. cheers.
i am purchasing a new IP for the first time and i ready appreciate some advise on my account setup.
Using my PPOR, i have setup an Line of Credit (LOC)from the CBA.
IP cost 300k. I will be paying 80% from a standard var (SVR)home loan from CBA and the remaining + stamp duty etc from the LOC. paying only interest only. Any thought on this?
I will be making a first payment on the deposit using the LOC
1. the interest that are charging from the LOC and SVR, should these interests be charged into a seperate account or charge straight into the LOC and SVC home loan respectively? my experiences that you can shared? I will be paying these off as the interest are charged.
2. What happens when the interest of the LOC are charged back to the LOC and will it make the tax accountant problematic at the end of the year? it will be interest on interest?
i am trying to get the structure right. thank for reading. cheers.