Trying to figure out the best way to move forward. Have seen some places that I'd like to move to, and want to know how to act when a "bargain" comes along.
Current PPOR is 50% loan, 30% unused LOC, 20% equity. Loan is almost fully offset.
If I pay the deposit (for new PPOR) with the LOC then the interest isn't deductible. If I pay the deposit with money from the offset then the LOC is just too large for capitalisation; feels like a bit of a waste and will take ages to get back up to LVR 80.
How can I get the LOC to work for me?
Current PPOR is 50% loan, 30% unused LOC, 20% equity. Loan is almost fully offset.
If I pay the deposit (for new PPOR) with the LOC then the interest isn't deductible. If I pay the deposit with money from the offset then the LOC is just too large for capitalisation; feels like a bit of a waste and will take ages to get back up to LVR 80.
How can I get the LOC to work for me?