Is there a lending product for this situation?

I’m looking to buy a new PPOR. I can pay for it in cash.

However, I’m pretty certain it won’t be a forever home, but would be a good IP in the future. I want to structure things in a way that minimises non deductible debt now and maximises deductibility in the future.

From my research a lot of which has been invaluable information from this forum, the ideal scenario would be to use borrowed funds for the purchase, and fill an offset account for the duration while it’s PPOR.
(Then be free to move the money out of the offset when it becomes an IP to maximise deductibility in the future / have the funds available for another PPOR.)

I am clear on the difference between offset vs redraw or borrowing new money using this asset as security in the future. Offset I see is the only way the purpose of the loan could be maintained for this new property for future flexibility and deductibility.

Here’s the rub. I’m not working for the time being, no income. Happily living off savings.

Does anybody know if there is a lending product where I can use borrowed funds & offset ... while not working / showing income?

Property investment is a game of finance...

 

No lender could lend when the borrower has no income as it would be a breach of the nccp act

 

Thanks Terry.

Are all lenders bound by the Act?

Could a loan be arranged with another person or entity with an offset arrangement?

 

How do banks view income producing assets like shares with dividends? Could you put the money into shares and then show the bank that you have income from the divi's?

 

get some legal and tax advice on gifting to the trustee of a discretionary trust and then borrowing it back under a written loan agreement with a 0% interest rate. Later could refinance with a bank and pay your money back to the trust, which could then make a distribution of capital or lend it for the next property.

Pay particular attention to Part IVA ITAA36

 

Great thinking. Much appreciated.