A thought on credit cards

[Mr Medved]

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.

 

[vampyr]

Some 'savvy' property investing guys I know

It's not just for savvy property types. Also a good way for people to pay down their PPOR mortgage.

That's why I put savvy in inverted commas, my friends with PPOR's say that kind of stuff is for the professionals and not applicable to them
Same for when I tell them other things like to get a PAYG variation to help decrease interest paid and increase cashflow, they don't think it's allowed for the normal investor and don't look into it any further regardless of what I say!

What reason would you suggest for the PAYG variation?

 

[House]

What reason would you suggest for the PAYG variation?

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

 

[JulieW]

Try renting a car, renting a hotel room , booking a plane ticket or buying online without one.

I hate how some hotels not only take a copy of the credit card when you check in so they can charge you if you do a runner/damage etc but how they also try to take a photocopy AND want a photocopy of your drivers licence. Always push back on that sort of rubbish even if the poor pleb tries the line "But sir, it's our policy". A driver's licence is 100 points ID nowadays. If they don't relent, just say you don't drive. Once when someone did the credit card photocopy thing while I wasn't paying attention I calmly picked up the sheaf of check-in papers while chatting to them, tore it off and ripped it up. It's totally unnecessary.

Perth hotels seem to be the most frequent abusers for some reason (or maybe I just keep picking the wrong hotels in Perth ).

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.

 

[Sa_bogan]

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

 

[Matthew 26:14]

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.

 

[long88]

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...