Should I put Savings in owner occupier or investment offset account?

Should I put my savings and salary into my owner occupier interest only mortgage offset account with mortgage at 4.3% or my investment properties principal and interest offset mortgage account at 5.6% which is already positively geared?
From a pure cash perspective the latter works out much better option as I pay off more of the principle each month + benefit from the higher interest rate. Also, there is no benefit of negative gearing. Is anyone aware of any additional tax implications or any other considerations?

Thanks

Chris

 

Put it into your PPOR offset account - much better to deleverage/interest reduce on your non-deductible based debt.

Then get your interest rates sorted - you're paying well above market rates. The IP loan especially should be high 3's to mid 4's dependent on whether you want to remain on IO or P&I - in either case though at least 1% less than what you're currently paying.

 

Thanks heaps for the reply

 

It depends on your taxable income. If you don't pay tax then it may be better to put it of the investment loan - from an interest saving perspective. Assuming both properties have the same owner.

Just work it out mathematically.

Alternatively consider a recycling debt strategy - pay down the cheap non-deductible loan and reborrow to pay down the investment loan (at owner occupied rates).