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Using a loan for I/p Expenses

Discussion in 'Property Finance' started by leon brown, 22nd Jun, 2015.

  1. leon brown

    leon brown Active Member

    21st Jun, 2015
    Hi Property Chat

    I have a term loan with the balance in the offset and has not been mixed with any other funds .

    I want to use this loan for the odd Investment Property expense not to pay interest just expenses .
    The loan is held with Macquire if that matters .

    If I leave the drawn funds in its offset and only use it for investment expenses
    and pay the interest (not capitalize ). Will I be able to claim the interest plus the cost of expense ?
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    18th Jun, 2015
    I don't like this set up because there is a long gap between the borrowing and the use of the funds. The answer is 'possibly' deductible as long as you don't mix.

    But Macquarie has free redraw, so why not pay back into the loan and pay for expenses by borrowing the money when needed.

    Hope you have a separate split on the loan too.