Using a loan for I/p Expenses

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 ?

 

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.