Deposit for Investment property purchase

Hi All,

I am have submitted refinance paper works between current Bank 1 and new Bank 2. Will have access to my equity amount in maximum 10 days will all loan, offset, equity with Bank 2.

now we purchased a property at Auction yesterday. I need to pay 5% 38k today or latest Monday to real estate trust accounts.

what is best - right way to make this transfer.

1)
From my full offset account directly transfer 38K to agents Trust account details.
Once the equity becomes available in 10 days. transfer 38K back to my offset or personal account with same description "deposit 1 abc street"

2)
first transfer 38k to my home loan account. Then make a redraw payment of 38K from my home loan account to agent trust account detail.
as the refinance gets confirmed in 10 days and this homeloan account gets closed. that statement shows that 38K from there were done to purchase an investment property.

idea is simple all 100% and stamp duty needs to be tax deductible or done right way. there is no cross colltarisation between properties.

thank you

 

1, interest will not be deductible and will cause mixing

Tax Tip 5: Reimbursing yourself - Impossible Tax Tip 5: Reimbursing yourself - Impossible
Tax Tip 9: Don’t use Cash in Offset account to Invest Tax Tip 9: Don’t use Cash in Offset account to Invest

2. preferred option, but you will need to split the loan after settlement. make sure the funds will be immediately available.

Seek specific tax advice from a tax lawyer or tax agent.

 

thank you Terry - so that 37K loan will be one more split loan that will have to organised with mortgage broker during the paper work for purchase of IP1 right.
say purchase price 750k
he makes 2 split
one for 37k and other second split for 713k - thats about it right.

interest wise for 4-5 weeks from now till settlement for 37k I am not too worried, but would prefer long term setting done correctly.

also reached out to my accountant as well. thank you.

 

I can't comment as I don't know your circumstances. but you would want to split the loan into the relevant portions such as investment and non-investment.