Using offset to build GF

[somer_hut]

Hi All,

went to my broker to ask about construction loan with homeside to build a GF at my PROP.

he told me construction loan np for 120k, as I have sewer encasement etc.

but said at end of construction loan it all gets combined as one loan only for the prop and GF, is that right...said we can just split it in 2 accounts..

or he mentioned build the GF using the equity, then do a revaluation. setup 2 linked accounts. one for prop and one for GF...

so he thought same effect.

is that correct.

from tax purpose...i guess even if i use my money from offset, does that become tax deductible??

 

[Terry_w]

Hi All,

went to my broker to ask about construction loan with homeside to build a GF at my PROP.

he told me construction loan np for 120k, as I have sewer encasement etc.

but said at end of construction loan it all gets combined as one loan only for the prop and GF, is that right...said we can just split it in 2 accounts..

or he mentioned build the GF using the equity, then do a revaluation. setup 2 linked accounts. one for prop and one for GF...

so he thought same effect.

is that correct.

from tax purpose...i guess even if i use my money from offset, does that become tax deductible??

I can't understand your question exactly, but using cash (offset account money) for an investment is not a good idea. It will basically make you pay more tax - assuming you have non deductible debt still. If not non-deductible debt then it may not be such an issue, but still a good idea to avoid cash.

 

[Rolf Latham]

HSL is fine to do builds with grannies to 95 %

Dont use your cash and then try an get it back out, because the val may not stack up - best to know what before you commit your tax paid dollars.

ta

rolf

 

[Aaron_C]

Do the direct construction loan rather than build then cash out due to val problems.