Hello,
I am planning to refinance my owner occupier property to get a better rate and to also extract some equity from my property to invest in shares. My current home loan has a redraw facility and I have stored 50 K in the redraw, with a total mortgage of 550K.
My plan is as follows:
- Pay down the 50 K to bring down the money owed on the house to 500K.
- Refinance the mortgage and get two loans with offset accounts: a. Mortgage loan owing 500k, principal and interest loan (this should reduce my repayments) and b. A new investment loan of 100K, interest only loan to buy income producing ETFs.
- I want to park my new $100 K loan into the offset account linked to my investment loan and dollar cost average my exposure to the market by removing $5000 every month from this offset account into my share-trading account to buy ETFs
As I draw down the money in the offset account each month to buy income producing ETFs the interest that I have to pay should also increase each month accordingly. Is this interest tax deductible?
835 views
835 views1 replies
1 replies
835 views
1 replies