Help on what to do best strategy

HI Everyone.

I have one IP and have just bought a block of land for a PPOR. Now my investment property I currently owe the bank $140,000 and the loans I took for the land purchase are $99,000 and $76,000 giving a total of $175,000 for the land. Now I'am paying I/O on all the loans but dumping all my pay into an offset account offsetting the $76,000 pretty soon I will have 50K sitting in this offset. My goal is to completely rid myself of the $76,000 loan before I take out the construction loan. The interesting thing I have found now is on my IP Loan I have a redraw of $212,000 which the bank told me I would loose once I take these loans out, however it is still available to me. Should I redraw on the IP to pay off my land or just leave it be??? Is there anyway I can do this and claim more from my IP ( I don't think there is but maybe someone has some tricks/loopholes. Maybe I loose my redraw when the construction loan is taken out in any case what is the best strategy.

Thanks
 
HI Everyone.

I have one IP and have just bought a block of land for a PPOR. Now my investment property I currently owe the bank $140,000 and the loans I took for the land purchase are $99,000 and $76,000 giving a total of $175,000 for the land. Now I'am paying I/O on all the loans but dumping all my pay into an offset account offsetting the $76,000 pretty soon I will have 50K sitting in this offset. My goal is to completely rid myself of the $76,000 loan before I take out the construction loan. The interesting thing I have found now is on my IP Loan I have a redraw of $212,000 which the bank told me I would loose once I take these loans out, however it is still available to me. Should I redraw on the IP to pay off my land or just leave it be??? Is there anyway I can do this and claim more from my IP ( I don't think there is but maybe someone has some tricks/loopholes. Maybe I loose my redraw when the construction loan is taken out in any case what is the best strategy.

Thanks

no don't redraw as the interest will not be deducctible and yu will created a mixed loan
 
HI

No I have not x colled them. Ok so pulling money out of my IP redraw is just pointless.

Pulling money out of IP redraw to pay for PPOR debt is pointless, but fine if it's to pay for new IP down the track - chat to a good broker about the best way to do this when the time comes.

It's always best to use an offset instead of paying into a loan, especially an IP loan.
 
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