Hi there,
Current situation:
PPOR value: $1m
Mortgage: $675 000
Offset: $400 000
Line of Credit: $0 borrowed against $50k facility
Net debt: $275 000.
Two things:
a) I want to buy lots and lots of shares
b) I may wish to turn this PPOR into an IP one day.
I would assume the best thing for me to do is:
* transfer money from offset to mortgage (making mortgage $275 000 and offset of $0)
* then apply for increase in LoC from $50k to $575k (which is 85% of PPOR value minus mortgage of $275k)
* use the $575k to buy shares.
Now that works fine - big deductible debt against shares, small non-deductible debt against PPOR - but then what happens when I convert it to IP - I then have a small deductible debt against the IP which I'm not sure is good.
Can anyone advise if this is the best way of going about things?
Thanks
Glebe.
Current situation:
PPOR value: $1m
Mortgage: $675 000
Offset: $400 000
Line of Credit: $0 borrowed against $50k facility
Net debt: $275 000.
Two things:
a) I want to buy lots and lots of shares
b) I may wish to turn this PPOR into an IP one day.
I would assume the best thing for me to do is:
* transfer money from offset to mortgage (making mortgage $275 000 and offset of $0)
* then apply for increase in LoC from $50k to $575k (which is 85% of PPOR value minus mortgage of $275k)
* use the $575k to buy shares.
Now that works fine - big deductible debt against shares, small non-deductible debt against PPOR - but then what happens when I convert it to IP - I then have a small deductible debt against the IP which I'm not sure is good.
Can anyone advise if this is the best way of going about things?
Thanks
Glebe.