When an investment property is not tenanted is) it’s On the maker to sell or between tenancies and thus not earning rental income – could you put spare funds on the offset account linked to your loan account in order to save you some $ by not having to pay the full interest monthly, without losing any potential negative gearing tax benefits or being in breach of any rules ?
You could put money in an offset at any time.
Keep in mind you would want any cash in the non deductible home loan. Even though the interest may not be deductible now for this property, it can be used to reduce CGT upon sale.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
Not really relevant whether the property is tenanted or not. If its available for rent, all the related deductions continue.
Offset account has the same functionality whether you’re living in property, tenanted or empty.
D.T. | DT Property Management
http://www.dtproperty.com.au
Email Me | Phone MeAdelaide Property Management - whole Adelaide metro
The offset is just a bank account – you can transact from it whenever you like.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks all for your replies, it’s much appreciated.
Consider an offset account just the same as a normal bank account – the only difference is you save on interest, than get paid it.
A REDRAW account is very different however – do not place funds in and out of there without understanding exactly what you’re doing. Every time you draw from a redraw account the ATO considers this ‘new’ borrowings – so if you draw out for non investment reasons you can cause serious tax issues which will affect your deductibility on loans.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
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