In the process of getting loans etc setup for a property purchase through an smsf, and looking at the pro's and cons of using an offset associated with the loan. So, the scenario goes like this: - the 70% loan will be $269,000 at an interest rate of 5.56%. - The Interest on this loan will be $14956/annum. Lets assume I have another $10k funds available. Do I put it in the offset, or do I purchase (lets say shares). - If I put it in the offset, the interest per annum would be $14400, a saving of $556 per year, or - If I buy shares.... lets say Westpac...for 10K, you could buy 338 shares. The 338 share gave a total of $1.88 dividend per share over the last year, so that works out to be $635 in divivend payments. So, aside from the upside of $79 for the year, is there any other benefit in doing this, rather than leaving the money in the offset? I know people talk about tax credits,etc, but not sure how they work. I know this is simplified, but just trying to understand the concept.