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From: Anonymous
A friend of mine recently advised that he
intended to buy his next property - which he
would live in as a principal residence, and
instead of paying the loan off (he had the
full amount - on a 300K property), he would
simply park it in an offset account. This
way he effectively paid no interest on his
principal place of residence, and when it
came to move to a different property in the
future, he would simply transfer the funds to
a new offset account -this time against the
new property. Also, this way, it allowed him
to retain the previous property as a geared
Investment property without the need to sell
it. Is this legal a legitimate process, &
what are the catches?? (It sounds too good to
be true)
A friend of mine recently advised that he
intended to buy his next property - which he
would live in as a principal residence, and
instead of paying the loan off (he had the
full amount - on a 300K property), he would
simply park it in an offset account. This
way he effectively paid no interest on his
principal place of residence, and when it
came to move to a different property in the
future, he would simply transfer the funds to
a new offset account -this time against the
new property. Also, this way, it allowed him
to retain the previous property as a geared
Investment property without the need to sell
it. Is this legal a legitimate process, &
what are the catches?? (It sounds too good to
be true)
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