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quick question offset account

Discussion in 'Property Finance' started by Elives, 12th Apr, 2016.

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  1. Elives

    Elives Well-Known Member

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    Hi all,

    I have a quick question, i have an offset account with 40-100k in it cash and i'm thinking of using this account as my main transaction account for property related deposits and out goings.

    question is should i just make a new offset account and have minimal buffer in it for transaction? and keep the one with 40-100k cash separate? does it really matter? i feel like i'm over thinking it. i don't really want to have heaps of accounts i'd prefer to have as minimal as possible.

    opinions?
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    I don't think it matters.

    General rule is to have the offset linked to the PPOR loan (if you have a PPOR) and have all income/expenses coming out of it.

    Cheers

    Jamie
     
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  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    It only matters if you're putting equity releases into it. If you're not, everything else mentioned is fine.

    I have a separate one that equity releases go to, so as to not muddy the waters with my own transactions.
     
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  4. Elives

    Elives Well-Known Member

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    yea i keep equity and cash separate but wasn't to sure about having lrg sum of money in the transaction account (offset account used as transaction account).
     
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    There are no tax reasons to keep things separate (assuming the one person)
     
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    where did the cash come from, and do you have any PPOR debt ?

    ta
    rolf
     
  7. Elives

    Elives Well-Known Member

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    savings / investment income. and no.