Sunday 9 September 2007

CC Arbitrage Update

As I suspected, when I finally got through to the correct department at ANZ Bank regarding the "missing" 0% balance transfer it turned out that there was "no record" of the transfer being processed, so I had to request to transfer again in order to get things moving. This time I got a transaction receipt number, so I expect the $14K transfer to hit my NAB CC account within the promised three working days.

I had planned on investing the funds in my online savings account at 6.00% interest (which would be taxable), but my dad asked to borrow some money to complete some house renovations prior to them selling their city house (they're downsizing/treechanging to a country property they bought a few years ago). If I lend the funds to him as an interest-free loan he could "gift" me an amount equivalent to a 4.5% interest rate. As a gift this money would be tax-free, so I'll be no worse off than I would be getting a taxable 6.0% return, and he'll be much better off than having to get a bank loan at around 7.5% interest rate.

Copyright Enough Wealth 2007


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