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Gockie · 4th Aug, 2017

Parkzilla said: ↑

I was wondering the same thing Inertia - effectively converting your offset funds into tax-deductible debt.

This is my preference but as I have surplus cash in the offset and not as much equity available to re-draw, I think the path will end up being paying down some of the PPOR with the cash and then refinancing with a separate LOC for share purchases. You end up losing access to some of those funds (i.e. dependant on LVR parameters for the LOC, you may have a ceiling of 60% - 80% available to re-draw) but perhaps this is a worthwhile trade-off for having a tax-deductible loan.
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To me, this sounds like a good way to go.

Terry_w · 4th Aug, 2017

See this old tax tip of mine too

Tax Tip 9: Don’t use Cash in Offset account to Invest Tax Tip 9: Don’t use Cash in Offset account to Invest

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Our portfolio at 32

Gockie Life is good ☺️ Premium Member

Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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Our portfolio at 32

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