Terryw wrote:
Am,Do you meant the LOC will slowly be used up and the funds available will be diminishing?That would be the case. But even then there would be no reason to pay down the LOC. You would just want to pay the interest each month. If you do start paying it down you would be diverting cash which you could otherwise use to pay down…[Read more]

Thanks Terry.A follow up to your response:At some point, the LOC will be getting thinner with all the Outgoings- i.e.IP IO Repayments coming out of LOC. So, I would have to payback some amount in to the LOC to sustain Outgoings from the LOC. If this is correct, then would it matter when I put in money into the LOC? Beginning of the Financial Yr or…[Read more]

I can understand the Capitalisation of Interest for the "Capital Costs" and the "Borrowing Expenses" from the LOC. This can claimed upto 5 yrs. However, with all the outgoings for the IP (Water, Rates, etc.) + IP IO deductions coming out of the LOC, I assume that these outgoings would have to be paid back. That way the Outgoings for the next Fi…[Read more]

No the rent is going to the offset account linked to the PPOR.So, if  I do recieve a refund as a result of negative gearing, do I put it straight back towards the LOC?Basically, any outgoing expenses incurrend in a Financial Year (Year 1) have to be paid back or can the expenses be carried over to the next financial year (Year 2)?

I have been on the lookout for a good reference for really good Property Tax Accountant in the Western Suburbs of Melbourne.Surely, somebody can recommend a good Tax Accountant

We contacted – "Property Pursuit". They are located in Paddington.Very professional.Website – http://www.propertypursuit.com.au"

InvestmentPupil wrote:
Ben – I believe so, otherwise they won't be called a Bank and but instead a Pot-of-Gold-Free-4-All AM2778 – Not sure why you're not having your repayments coming direct from your offset instead? (if you're paying off your LOC loan with your LOC, you're capitalizing interest are you not?). I think ATO does not like…[Read more]

I have the same Set Up:1) Rent from the IP goes into the 100% Offset account lnked to the PPOR.2) Loan of the IP is Interest Only, and the Interest Only Repayments gets debited from the LOC on PPOR.3) LOC is Interest Only, and the Interest Only  Repayments gets debited from the 100% Offset account lnked to the PPOR.If the IP is -vely geared, the d…[Read more]

State where the Property is located – VICI have the following:*  paper lease signed by landlord (former owner) and tenant  ? Yes. Secure Lease till the 30/04/2012.*  a tenant bond lodged with the Rental Bond Board  ? No. The Former Landlord and Tenants are known to each other. *  an inbound condition report ? No. The Property is in really good co…[Read more]

Thanks Terry.No schemss for me. Looks like its constant supervision to co-oridniate the repayments between the Loans that I have and making sure that LOC is always topped up after all the deductions occur.Cant beging to imagine how complicated it is with a multi – Investment Portfolio.Could there be an "Equity Bin" – One LOC servicing all the IPs…[Read more]

From my understanding, Interest on Investment Loan is Tax Deductible. Is Interest on Interest charged for the Investment Loan also Tax Deductible?

Also, can offset account be shared between 2 loans ?

Thanks Terry

I  have a question – If Interest Only Repayments on Loan C are getting debited from Loan B and Interest Only Repayments on Loan B are getting deducted from a Transaction/Savings Account, thenWouldnt the funds available in Loan B be decreasing ? I would assume that the amount of Repayment of Loan C would be far greater than the amount of Rep…[Read more]

From my knowledge, Legal Expenses on Investment Property are not Tax Deductible.Needs to be verified from a Tax Accountant.AM2778

Thanks Terry.

I have a question:1) I took out a seperate loan (as an Equity Release) from PPOR. I usesd some of the funds for Personal Stuff – Debt consolidation, PPOR Renos, etc.2) I have refilled the funds so that the whole amount of Equity is available 3) I intend to use the funds from the Equity Release, to put in a deposit for the an IP Purchase.Can this…[Read more]

Thanks Terry once again.

Thanks Terry. I do have a seperate Loan for the Equity Release.Agree with depositing the Rent into the Offset Account.But where should the IP Mortgage Repayment come out from ??If youre saying not to reduce the Investment Debt, then how can I leverage extra cash for borrowing for future IP purchases ??cheers

thanks a lot for the information. Appreciate it. Will check the link.