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
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