In response to the OP - I basically do this for convenience. Be aware that access to "funds" in an interest-bearing savings account may have fine print constraints - and may evaporate in a Cyprus-type meltdown.
Simply means there's more $'s going into your offset every week instead and reducing interest repayments instead of getting the one annual lump sum and buying something with it as most do. Rough numbers as an example- $360k mortgage for 30 years. If you were to pay an extra $100 a week into it, you would knock 10years off and save about $190k worth of repayments. If you knew you were due a tax refund of $5,200 you could ask for that to be repaid at $100/week instead of the lump sum I've never done it myself as Ive yet to buy an IP but it's a bit of work that pays off very handsomely in the long run. More detailed read here
Well done. Yes the 'good germans' amongst us are the ones that the PTB rely on to be bush lawyers and enforcers for the corrupting regime.
I think that offset account are a good way to go, better that having all the money on the mortgage and having it sit in redraw. I think a line of credit also has a contract term of around 10 years unlike a mortgage which is of 30. Maybe it comes down to the FI
You can use your credit card as a debit card. When the balance is zero and say $5k credit, just transfer $1k or whatever you want to your card, so it goes into debit. Then you can pay for the airline tickets, car rental or whatever than you have to use a credit card to pay for. You never have to go into debt this way.
I am in IT, and use the card to buy shit load of stuff. 20k/month easy. Result.. lots of point to spend. i wonder how can i spend it on PM. maybe have to claim those myer or kmart gift cards, and sell it cheap on trading section, then use the proceed to buy pm. have been using to buy clothing on myer, etc. Get paid to spend. This is the best inventions.. couldnt live without it...
