Your Investment property can cost you nothing to keep

[geoffw]

BV

Sorry, I didn’t make it clear.

I already had the $5K to buy shares, and I could have bought them with cash. But instead of buying them with the cash, I used $5K from the LOC to buy the shares, and put the $5K cash against PPOR.

 

[Sim]

Another way of looking at it - if you have both cash and equity (ie LOC), as well as non-deductible debt, then never buy investments or tax deductible expenses using cash - use your LOC, leaving the cash to offset or pay off the non-deductible debt.

Cash sitting in a normal bank account is useless - it must either be in an offset account, or payed off your non-deductible PPOR loan.

 

[BV]

Good thinking guys
Thanks a lot

BV

 

[Bill.L]

Hi all,

Sim's quote "Cash sitting in a normal bank account is useless".

To quote from one of my favourite movies "thats not entirely accurate"

I mean, I could find a use for it ,

apart from putting it in our offset account.

bye

 

[Sim]

Originally posted by Bill.L
I mean, I could find a use for it,

Ahh, but then it wouldn't be sitting in your bank account would it ?

If you are suggesting what I am thinking you are suggesting, then yes, that new IBM ThinkPad T41p would be a good use for that money compared to it just sitting in a bank account

 

[Bill.L]

Hi all,

Sim, What I really meant was that if the money was useless in YOUR account, then it would be much better off in MY account.

Of course my only account is an offset one anyway.

bye