Let's say I have a PPOR loan of $100 and I have $100 in an offset account against this loan. I would like to buy $100 of shares on the market.
I could use $100 in the offset to repay the PPOR loan, then create a split and redraw $100 to fund my share purchases. The interest on the PPOR split to buy the shares would then be deductible. As I save money month to month I could fill up the offset with savings to save interest. If I saw further value in the share market, I could keep using the offset cash to fund share purchases and the interest on the loan would be deductible.
Is this correct or have I missed something? If correct, then over time I could convert my entire PPOR debt into deductible debt and put money into the offset and withdraw it without worry about the "purpose" of those transfers - as long as the original redraw from the loan was for an "investment purpose".
Just checking to see if I have got this correct!!!
I could use $100 in the offset to repay the PPOR loan, then create a split and redraw $100 to fund my share purchases. The interest on the PPOR split to buy the shares would then be deductible. As I save money month to month I could fill up the offset with savings to save interest. If I saw further value in the share market, I could keep using the offset cash to fund share purchases and the interest on the loan would be deductible.
Is this correct or have I missed something? If correct, then over time I could convert my entire PPOR debt into deductible debt and put money into the offset and withdraw it without worry about the "purpose" of those transfers - as long as the original redraw from the loan was for an "investment purpose".
Just checking to see if I have got this correct!!!