Hi guys,
Recently purchased my second IP and i know i should have asked prior to purchase, with regards to loan structuring. Please assist me with the current situation i'm in.
Loan with CBA
IP1 - purchased in 2008, was paying P+I and now changed to IO recently prior to purchase of 2nd IP.
IP1 Purchase price $530k, Current Value $800k
Loan A: $150k - MISA Offset account has $150k (fully offset)
IP2 Purchase price $740k
Loan B: $210k (Equity from IP1) -with CBA Everday Offset account.
Loan C: $576k
All rent from IP1 and IP2, and my personal income, is being deposited into the Everyday Offset, to reduce the interest payable on Loan B.
Everyday Offset still has $20k remaining from the Equity release from IP1, for IP rainy days/emergency funds.
Everyday Offset currently has $30k in the account, with the assistance of my personal income. If in the event i need to withdraw some funds for 'personal use' am i contaminating the account?
(even though theoretically im not withdrawing from the equity, as it will still be above $20k)
Have I set up the account incorrectly, can some please advise how can i rectify the situation?
Where should i deposit my personal income, to assist to reduce the interest payable, but also allowing me to withdraw for personal use?
Do i need to setup another offset account for personal income (to reduce interest payments) without contaminating the account and allowing for tax deductions.
THANK YOU,
k88k.
Recently purchased my second IP and i know i should have asked prior to purchase, with regards to loan structuring. Please assist me with the current situation i'm in.
Loan with CBA
IP1 - purchased in 2008, was paying P+I and now changed to IO recently prior to purchase of 2nd IP.
IP1 Purchase price $530k, Current Value $800k
Loan A: $150k - MISA Offset account has $150k (fully offset)
IP2 Purchase price $740k
Loan B: $210k (Equity from IP1) -with CBA Everday Offset account.
Loan C: $576k
All rent from IP1 and IP2, and my personal income, is being deposited into the Everyday Offset, to reduce the interest payable on Loan B.
Everyday Offset still has $20k remaining from the Equity release from IP1, for IP rainy days/emergency funds.
Everyday Offset currently has $30k in the account, with the assistance of my personal income. If in the event i need to withdraw some funds for 'personal use' am i contaminating the account?
(even though theoretically im not withdrawing from the equity, as it will still be above $20k)
Have I set up the account incorrectly, can some please advise how can i rectify the situation?
Where should i deposit my personal income, to assist to reduce the interest payable, but also allowing me to withdraw for personal use?
Do i need to setup another offset account for personal income (to reduce interest payments) without contaminating the account and allowing for tax deductions.
THANK YOU,
k88k.