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Mmmm, so an offset would be better suited for a high income earner or a household with 2 incomes?
Just stick to paying off the loan as fast as you can.
Like i mentioned earlier the only reason i chose it was to be in a better position if i did choose to make it an IP down the track. Otherwise a basic variable loan would have done me perfectly.
So a big advantage of a redraw is that it reduces the total value of the loan.
This is something that appeals to me moreso than the offset but I know the offset will be of benefit in the future if I turn the property to an IP.
With the offset, those savings aren't actually paying off the loan, just reducing the amount of interest paid while the money is in there.
Doesn't look so attractive.
Thanks Jason,
I know i'm overthinking this whole offset thing.
I know that extra money should go into it to reduce the interest etc. but i'm not a high income earner and it's only me that's paying for this house!
I know this will change as my sons get older.
These "savings" that will be in my offset aren't going to be in there permanently.
When I decide to take a holiday, buy a car or whatever, this is where the money for that will be coming from.
So because I know there won't be 200,000 just sitting nicely in my offset anytime soon it confuses me as the offset is a savings account....this savings account will be dipped into for life expenses that i would normally save for in a savings account.
Thanks Jason,
These "savings" that will be in my offset aren't going to be in there permanently.
When I decide to take a holiday, buy a car or whatever, this is where the money for that will be coming from.
So because I know there won't be 200,000 just sitting nicely in my offset anytime soon it confuses me as the offset is a savings account....this savings account will be dipped into for life expenses that i would normally save for in a savings account.
With the offset, those savings aren't actually paying off the loan, just reducing the amount of interest paid while the money is in there.
Doesn't look so attractive.
Oh and someone mentioned we get free travel insurance, however we only used it once for our late honeymoon trip.
3 is just hooey, show me a reward system that makes the average person better off than paying with cash and Ill show you evidence the moon landing was faked
discipline is the key with CC, also I use my points to reduce my expenditure rather than to buy more stuff eg fuel vouchers or kmart/target vouchers to buy essentials
can you elabotate please.