Eyeyeyey...Candide said:Sorry but I do not think this is anywhere near correct.
OK, firstly, Doncossack is already in the professionals package:
So, no "incremental" cost incurred here to move over to a wealth package. He's on 6.82% in the wealth package!Doncossack said:Got two P+I loans thru CBA's wealth package $300 year fees
Secondly, deductibility is entirely dependent on the purpose of the loan. Mine is for my PPOR so that goes straight to my bottom line. If its an IP then sure it just reduces your declarable loss by reducing your costs, but surely you're not suggesting you're better off paying a higher interest rate so that you can get a better tax deduction? I'll take the lower cost and reduced deduction anyday...
Thirdly, as mentioned in point1, he's already consolidated in a wealth package, as am I. The costs of these wealth packages are tiny compared to the benefits they can give you if you're going to do some serious investing. The free property valuations alone would cover your annual costs if you're drawing equity regularly for more IP purchases. Not too mention all the other bundled benefits.
Lastly, what do you mean by this:
They're there for sure. I'd call a 6.52% standard variable rate on a P&I loan a pretty good discount compared to the advertised rate. Some people are "fixing" loans at a rate higher than this today.Candide said:miniscule interest rate discount (which I don't beleive exists)
Cheers,
Michael.