From: Andrew G
Hi folks,
Most of you in this forum seems to agree that I/O loans with offset accounts are a good idea. My query is, if you purchase an IP, you will get two accounts from the bank. The first is the loan itself showing the negative balance owing, and the second is the offset account which would start at $0 until you dump funds into it.
What happens when you buy another IP? You will have another "loan account" showing its negative balance accordingly, but can you use the same offset account for this second IP???
Also, do you guys recommend putting a small deposit to an IP so that the rent you get back covers the loan in full, or leave a gap and pay yourself from time to time to top up your holding account?
Thanks,
Andrew.
Hi folks,
Most of you in this forum seems to agree that I/O loans with offset accounts are a good idea. My query is, if you purchase an IP, you will get two accounts from the bank. The first is the loan itself showing the negative balance owing, and the second is the offset account which would start at $0 until you dump funds into it.
What happens when you buy another IP? You will have another "loan account" showing its negative balance accordingly, but can you use the same offset account for this second IP???
Also, do you guys recommend putting a small deposit to an IP so that the rent you get back covers the loan in full, or leave a gap and pay yourself from time to time to top up your holding account?
Thanks,
Andrew.
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