Offset account on investment loan

i didnt want to hijack someone else thread so here is my situation. (before i email my accountant just thought i get the public (pros) view on things)

this is more of a tax questions

numbers are for illustration purpose only.

Interest + principle loan with an offset account
cant overdrawn to pay deposit.. as u know nowadays its hard. i got 95% as good as it gets i hope ?

$1m loan stand alone

i have some cash at hand

question now is,

do i put money in the offset or not until i know what to do with it??


for the purpose of this scenario lets say the income tax rates 40%+
my guess not to offset and just claim NG ?

 

Not sure what you mean but it sounds like you have borrowed 95% to buy an investment property and want to know where to park your cash.

This will depend if you have any non-deductible debt, a spouse on a lower income, rate of return for cash going elsewhere and other things.

No one can really answer without more information.

 

So your LVR on current property is 95% ? Loan amount on current property with 95% LVR is: $1million

And you already have offset A/C attached the loan account. Is this a PPOR or Investment. Sounds like investment property as you claiming negative gearing, correct?

Have lot more questions to ask honestly to be able to analyse situation properly.. Best to sit down with your broker and accountant to work out next best move ...

 

Basically this. Lol.. I didn't re read what I typed . Bad mistake

This property is an investment
This is my only debt at the moment
Partner earns similar income

And I terms of return I probably won't beat the market. Let's say ETF or.term deposit only

 

The offset account is most likely a better return (via money saved) than a term deposit. So I suggest you put cash into the bank account with a higher return.

If you purchased shares you might enjoy a higher return as you are taking on a higher risk. You might also lose a lot of money.

The offset account or term deposit are basically risk free.

So the argument depends on how you perceive future share market returns and your risk apettite - so you are probably the best person to answer that.