IP Strategy & structure

[galumay]

.....Eg. If you want to buy a PPOR or even use the money to go on holiday. You can then take the cash out from the offset and the original loan would be tax deductible for this amount. .

Aghh, Ok, thats something I hadnt thought of.

 

[Colin Rice]

Aghh, Ok, thats something I hadnt thought of.

The penny is starting to drop!

Love that sound

 

[galumay]

The penny is starting to drop!

Love that sound

Hey thats why i am here asking questions, sorry, but i dont take things just at face value, i need them explained to me in a way that I can make sense of.

Plenty of people willing to tell me what to do, less willing to explain why!

I may be a slow learner, but once the penny drops....

 

[Colin Rice]

Hey thats why i am here asking questions, sorry, but i dont take things just at face value, i need them explained to me in a way that I can make sense of.

I meant it in a positve way. Its the best part for me as a finance broker when the penny drops.

Asking questions is THE best way to learn. It is proof that you are thinking stuff through. Never stop asking questions even if it annoys people

Im all about the "why" as well. It is how you can come to full understanding of any topic and also will bring truth to a matter.

 

[Heinz57]

By the way, OP paying down debt isn't illegal, last time I checked.

 

[galumay]

By the way, OP paying down debt isn't illegal, last time I checked.

LOL! Tru dat, I guess my takeaway from the feedback is that an offset account gives you the best of both worlds - the same effect as paying down debt, with the flexibility to quickly and easily re-access the debt if the right opportunity comes along.

I can see it does require good discipline, but I personally don't have any concern with that.

 

[galumay]

Had 2 of our offers accepted yesterday, hard decision to pick between the two of them but we are now the happy purchasers of our first IP!

 

[galumay]

Its taken a while to get stuff finalised, if i ran my business like a bank I would have no customers!

Finance went unconditional today, settlement is the 17th, we have 3 tenants with applications to rent for $1100 a week furnished.

On the bandwagon!

 

[D.T.]

Whatd u buy? Where and how much?

 

[galumay]

Ended up buying where we live, $520,000. Its a remote mining town and a sub lease on a head lease so very few people understand the market. Large undersupply of rental property, almost nil possibility of new buildings (head lease is fully utilised), hence the very high rental yields.