Hi all,
I intend to buy my first PPOR, price range 180k, I have cash 150k, and I intend
to pay it off in 3 year's time and buy something better if the situation allows.
I intend to get a loan of 144k (80%LVR) and put the money in the offset account (114k), 30k interest payable.
Q1. Will the bank allow me to leave such big amount in the offset account,
so they can only charge me so little for interest ?
I think this is a better structure because I have more flexibility, and can have more cash towards the next PPOR. Without the urgent need to sell the first one. Agree ?
Several years later, I aim to buy the next PPOR and change this one to an IP.
1. Assume no CG, if I remove all the $$$ in the offset account can the interest payment from the loan remaining become tax deductible ?
10 years from now if I decide to sell this IP, and there are CG, then I would presume the CG tax rules applies for this one just as another IP ?
Is this the best way to do it ? Many thanks for your help
I intend to buy my first PPOR, price range 180k, I have cash 150k, and I intend
to pay it off in 3 year's time and buy something better if the situation allows.
I intend to get a loan of 144k (80%LVR) and put the money in the offset account (114k), 30k interest payable.
Q1. Will the bank allow me to leave such big amount in the offset account,
so they can only charge me so little for interest ?
I think this is a better structure because I have more flexibility, and can have more cash towards the next PPOR. Without the urgent need to sell the first one. Agree ?
Several years later, I aim to buy the next PPOR and change this one to an IP.
1. Assume no CG, if I remove all the $$$ in the offset account can the interest payment from the loan remaining become tax deductible ?
10 years from now if I decide to sell this IP, and there are CG, then I would presume the CG tax rules applies for this one just as another IP ?
Is this the best way to do it ? Many thanks for your help
