Redraw Facility vs Offset Account Explained

Property Investing In Australia Is A Game of Finance

You may be paying too much interest on your home loan!

Offset Account Pros:

• liquidity / control

• no approvals required

• no minimum amount you have to redraw or fee

• no tax implication, you loan is still deductible

Offset Account Cons:

• poorer rates

• redraw not considered an asset

• sometimes offset accounts come with an annual charge

• sometimes you can’t offset 100% but with redraw you can

Discussion Points:

00:00: Introduction

02:12: Offset and redraw?

03:03: Offset account vs redraw facility

03:17: Liquid/control with offset

03:59: No approvals with offset

04:33: No minimum amount to redraw

05:15: No tax implications with offset

06:47: Better rates in redraw

07:37: Redraw not considered an asset

08:20: Annual fees

09:00: Can’t always offset 100%

09:40: PK’s recommendation

10:40: Conclusion

About The Host:

Subscribe to Aus Property Mastery with PK for no BS, “straight to the point” property investing strategies and data-driven insights about the Australian housing market - the only property podcast not run by a “Buyers Agent”. You can listen to Aus Property Mastery on Apple Podcasts, Spotify, Google Podcasts, & Stitcher.

PK Gupta is the founder of the Property Investment Accelerator — Australia's #1 Rated And ONLY 100% Independent Real Estate Course & Mentorship Program that helps people achieve passive income through property investing using DATA, WITHOUT wasting months doing "research", spending weekends at inspections OR dropping $10-20k on Buyers Agents each time.

Resources:

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