Using PPOR offset account for PI deposit

[m2014]

Hi.

I have PPOR loan with an offset account.
I want to buy my first PI (300K) and use the 10% deposit (30K) from my offset account.

After settlement, if I ask my bank to transfer 10% deposit money back into my offset account, can I claim interest from 300K or 270K only when I do my tax return?

 

[Rolf Latham]

Hi.

I have PPOR loan with an offset account.
I want to buy my first PI (300K) and use the 10% deposit (30K) from my offset account.

After settlement, if I ask my bank to transfer 10% deposit money back into my offset account, can I claim interest from 300K or 270K only when I do my tax return?

Best to split the current home loan to the 30 k, for investment purposes the use your cash to pay it down thence redraw for the deposit

Voila non- deductible to deductible

Ta
Rolf

 

[Rolf Latham]

I also sense you are looking to do a cross collateralised loan?

Ta

R

 

[Terry_w]

Hi.

I have PPOR loan with an offset account.
I want to buy my first PI (300K) and use the 10% deposit (30K) from my offset account.

After settlement, if I ask my bank to transfer 10% deposit money back into my offset account, can I claim interest from 300K or 270K only when I do my tax return?

The interest on the 10% will not be deductible if you do that. Structure it so that you can claim the interest as it would cost you around $1200 per year in lost deductions for the next 20 years or so.

 

[Jamie M]

Hiya op

If time permits- set it up as Rolf outlined.

Best to keep the investment debt interest only too.

Which lender are you with?

Cheers

Jamie