I have 7 refianced props to go to a LOC account cos i maxed out in other bank. can i just use 1 subacount ie no charges etc and they are all investment props and average the interest out to all properties eg 49K/7=7K for each property even though purchase prices are different
Fjficm, even if there is an additional charge for having subaccounts it would, in my opinion, still be worth your while so as to make thing easier for your accountant at the end of the year and therefore hopefully it will cost you less in accountant’s fees.
Pisces
You would be required to apportion the interest between each property as per the loan on that individual property. But the end result would probably be the same if you averaged them out.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
yes terry
i was thinking like apportioning the interest at the end of FY according to initial purchase price eg 15% for 1st house 10% 2nd 3rd 20% etc. this i thought will be easier for my accountant given that he inly has one figure and we can apportion it accordingly as above.
anyone does this?
fj, I have done the same as you are suggesting when having to get a ‘top up’ loan to fund some purchases last year.
As long as it’s IO, and all for investment, it works out well – plus it saves on having 7 lots of statements to file (I hate filing[baaa])
Cheers
Mel
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