Can I use my LOC to repay (to my other account) the expenses deducted from my IPs by the property managers? That is, if I recieve $100 net from my property (after the PM has paid water, levies, council & mgmnt fees of say $150), can I transfer/draw $150 from the LOC to deposit against the mortgage on my ppor or would this be seen as personal drawings?
Hi IP
I would say no, you cannot claim the interest as your bills have already been paid. It is a bit of a grey area though. Maybe you could get all your bills to you direct so that you could pay them yourself, except for the management fees – but maybe you could work something out with the agent about this too as it will help you to save interest on your home loan.
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
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