Strategy: Don’t Keep Large Sums in Offset Accounts

Works for me too. Using Chrome on my Android phone.

 

try this one Terry Waugh

 

That one works for me.

fyi propertytaxbook.com.au is also now working but not www.propertytaxbook.com.au.

Thank you Terry.

 

I haven't changed anything and don't know why this happens.

 

I used to have issues accessing it but none today Thanks Terry, what a legend!

 

New to the game and bit confused. If you repay and redraw how does the change anything? Aren't you still owing same amount or when you redraw its considered as investment and therefore deduction can be claimed?

 

If you reborrow to invest the interest can be deductible.

If you combine this strategy with this one there will be greater effect:
Strategy: Borrow Against the Main Residence for an Investment Loan (Shuffling Loans Around) Strategy: Borrow Against the Main Residence for an Investment Loan

 

Just getting my head around this as we have a situation we may be able to use it

So if I am understanding this correctly, if Bart pays down the home loan then redraws the 800k, then pays down the investment loans with this 800k, the HOME loan of 800k is not only at owner-occupied interest rate but is also tax-deductible?

 

Yes!

 

Are we assuming you CAN infact re borrow the 800k after you pay down the ppor. With tighter lending conditions could this be a problem? I.e not being able to borrow the amount originally in the offfset ?
Thanks Terry

 

The idea is to not take out a new loan, but just utilise the redraw facility of the existing loan.

BTW, I have a positive private ruling about to be issued for a client on this scenario for a client. It is straight forward, but gives them comfort.

 

Love your work bud, thanks for the contribution and clarification!

 

Thanks Terry

Not sure how far I’ll get with this though as my husband doesn’t believe it (he thinks it’s “balony” haha).

 

Could you convince him with a private ruling from the ATO?

 

Excellent

 

Why is it great if you can't borrow?
How would you borrow again if you have already hit the serviceability wall?
For example, paying off 100K won't increase the borrowing capacity by 100K.

 

I think you are missing something that I may not have explained well.

This all revolves by paying down a loan and redrawing again. So not extra borrowing capacity is needed as decreasing a loan with redraw available by $100,000 will result in you being able to borrow $100,000 again.

Redrawing from a loan is considered new borrowings for tax purposes.

 

Not if you are in negative borrowing capacity.

 

Yes even then.

 

Yep same dilemma. All stuck on IO