Get the right loan for your investment property

By Noel Whittaker
July 4 2019 - 7:30am
There is confusion about home loan accounts with a line of credit or redraw facility, and offset accounts. It's worth taking the time to understand them because they are vastly different animals and getting it wrong can be very costly.
There is confusion about home loan accounts with a line of credit or redraw facility, and offset accounts. It's worth taking the time to understand them because they are vastly different animals and getting it wrong can be very costly.

If the volume of emails is any guide, borrowing for investment is a hot topic with readers. And so it should be. After all, we have a tax system that is biased against saving because the tax office takes up to 47% of the interest you earn on money in the bank. On the other hand, if you take out a loan to buy property or shares, the tax office subsidises up to 47% of the interest; yet provided you keep the asset for at least a year, you pay capital gains tax at a maximum rate of 23.5%.

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