Rent Free?

From: Michael G


I would like to hear your thoughts on this...

Wrap house bought for $45k - 10% deposit = $40,500 loan. 30yr PI @7% = $62.18 per week
Wrap house sold for $65k no deposit = $65,000 loan. 30yr PI @9% = $120.69 per week

gross cashflow = $58.51

With these figures in mind, is it possible to take advantage of an offset account so that the wrap payment comes in at the beginning of the month and your mortgage payment is taken out at the end of the month?

I'm just wondering if it would be possible to generate enough wraps so that the movement of funds through a mortgage offset account (or line of credit) would be sufficient enough to substantially offset the repayments of a decent interest only mortgage (thereby controlling something for nothing, or at least less than market rent).

For example. All the wraps are held in a trust, that trust has an offset/loc account. Then because of the cashflow, the trust buys a house/unit with a IO mortgage offset/loc loan.

This place could have been bought by the trust for the purpose of being a place of work to hold the staff and inventory?

Are there any mortgage brokers out there that could do the sums on their laptops to see what hypothetical would make this plausable, if at all?

Michael Gruber
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Reply: 1
From: Gary Plotzza

Hi Michael,
Go to and click on calculators and you should fine a calculator that simulates off set accounts.

They should have a heading, how to save 40% on your home loan,it will do the same.

If you have any trouble email me.

Gary P. Flexible Mortgages
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