I think I'm on the right track but hoping to have it confirmed. Situation:
1) PPOR with two IO loans, one for the PPOR and the other for my IP. PPOR loan has 100% offset
2) My IP has one IO loan, no offset. Biggest Loan
3) My wife has a IP with one P+I loan. Loan has 100% offset
I earn substantially more than my wife.
Just had second child so after just purchasing 2nd IP, not in the position to take another jump yet.
I have enough cash to cover for 1)'s PPOR loan...hence won't pay any non-deductible interest.
However, I also have some extra cash. I'm currently putting it into 3) my wife's 100% offset account.
My thinking is, eventhough I'm reducing her negative gearing (or maybe possibly making it become slightly positively geared), it's better than putting it into a term deposit or one of those ING or DragonSaver accounts, getting less interest rate and paying tax on returns.
I'm not risk inclined enough to put into shares though.
Thanks for your thoughts!
1) PPOR with two IO loans, one for the PPOR and the other for my IP. PPOR loan has 100% offset
2) My IP has one IO loan, no offset. Biggest Loan
3) My wife has a IP with one P+I loan. Loan has 100% offset
I earn substantially more than my wife.
Just had second child so after just purchasing 2nd IP, not in the position to take another jump yet.
I have enough cash to cover for 1)'s PPOR loan...hence won't pay any non-deductible interest.
However, I also have some extra cash. I'm currently putting it into 3) my wife's 100% offset account.
My thinking is, eventhough I'm reducing her negative gearing (or maybe possibly making it become slightly positively geared), it's better than putting it into a term deposit or one of those ING or DragonSaver accounts, getting less interest rate and paying tax on returns.
I'm not risk inclined enough to put into shares though.
Thanks for your thoughts!