Hi all.
Current scenario is 3 IP’s, each IP has their own loan and small LOC buffer account where the rents are deposited into and the loan repayments come out of. The LOC balance for each is used for other expenses that the rent may not cover (AC issues/plumbing repairs etc). I have operated this way for many years but am looking at a way to reduce the amount of statements I have to sift through at tax time and am thinking of the following…
Proposed scenario would be to have all 3 rents go into the one LOC buffer account and all loan repayments and any expenses that the rents may not cover come from this account (LOC funds to be used on IP expenses if necessary). Any excess rent in the account would likely be used to pay down IP loans over time. We also have an offset account attached to one of the above IP loans which we use for our savings, wages and every day expenses and would prefer to keep this separate.
Can anyone see any issues with the above from a tax/ATO point of view? Also open to other suggestions as to the best way to manage the property accounts. Would LOVE to be able to get travel points on any expenses too, so if anyone does this, could you please share how it works for you?
Thanks. :)
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