I have just had athought that on the face of it seems logical but would welcome any input to let me know if I'm dreamin.
Just say you had a number of positively geared IP's and a PPOR all with mortgages but the IP's produced enough to live on. Could you elect to use this +VE CF to pay higher loan repayments on the IP's or the PPOR then get a Line of Credit (LOC) arranged to be drawn down at an annual figure equal to the annual +VE CF? The bank I would think would be happy as the money in equals the money out.
The benefits I see would be paying your IP's or PPOR off sooner plus the tax advantages of not having to pay tax on the +VE CF income as it goes to paying off your mortgages and not paying tax on the LOC as it is a loan.
Am I missing something? All advice gratefully accepted
Just say you had a number of positively geared IP's and a PPOR all with mortgages but the IP's produced enough to live on. Could you elect to use this +VE CF to pay higher loan repayments on the IP's or the PPOR then get a Line of Credit (LOC) arranged to be drawn down at an annual figure equal to the annual +VE CF? The bank I would think would be happy as the money in equals the money out.
The benefits I see would be paying your IP's or PPOR off sooner plus the tax advantages of not having to pay tax on the +VE CF income as it goes to paying off your mortgages and not paying tax on the LOC as it is a loan.
Am I missing something? All advice gratefully accepted