Question on Bank Account set-up

[roosterfan]

Hi all,

I am just about to settle on my 2nd property. My first property is currently my PPOR, and this second one will be my first IP. Both loans are with ANZ, and the PPOR has a full offset attached to it. The question I have is regarding the best structure for my bank accounts going forward. I will not have an offset account attached to the IP loan, but have set up another bank account which I can use just for IP related stuff.

Am I able to get the rent from the IP paid directly into my offset account (which is attached to the PPOR), or should I get it paid into a separate account in order to keep my IP money and PPOR money separate?

Also, is it best to keep some cash in the separate bank account for IP expenses, or am I able to pay them directly out of the offset account? Just getting a bit confused as to mixing up IP and PPOR money.

Also, if I were to re-finance in say 6 months after a re-val, would it be best to park this extra cash in the separate IP bank account until I need it, rather than putting it into the offset account?

In the not too distant future I am hoping to move out of my PPOR and rent myself, so at that time will have two IP’s, so that might make life easier.


Thanks!!
Rooster

 

[Rolf Latham]

Hiya

Tis ok to place rental income into the Offset linked to the PPOR as long as none of the money in the offset is borrowed.

When revaluing and pulling equity, get a new offset acct or separate LOC to park the "spare" borrowed money

ta
rolf

 

[roosterfan]

Hi Rolf,

Thanks for the reply. The offset does have some "borrowed" cash in it. I initially had an 80% loan when I first bought my PPOR, and then took out another 15% a few months later and put it into the offset account. This was used for deposit and legals for my IP, so has been taken out of the offset to pay for the new one. However, there may be some fun and games proving where this re-drawn money went, as it kinda sat there for a while until I found this IP! Given this, is it still OK to put the rental income into the offset?

Thanks