Pay Less Interest - Offset vs Redraw?

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:

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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. 

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