Ever since starting the property investing journey I have been paying for IP expenses using 'cash'. I'm starting to think about debt recycling the expenses.
I have two properties I want to start borrowing money for the expenses of.
Expenses I am thinking of are rates, water, strata, insurance, pm fees, maintenance/repairs/improvements.
This is the way I see it being setup. Any problems, now and in the future, with this setup?
- PPOR Loan with offset account (rents go in here and interest for all loans come out)
- Loan for IP1 (interest paid from ppor offset account)
- Loan for IP2 (interest paid from ppor offset account)
- Loan for IP Expenses. (interest paid from ppor offset account)
Should I have an Expenses Loan for each property?
If I keep only one expenses loan what happens when one of the properties is sold? Does it get messy with only being able to then claim the interest on the expenses from only the remaining IP?
Can you claim the interest on borrowings for expenses of a sold IP?
Am I allowed to claim interest on the money borrowed to pay the pm fees? Does anyone know of being able to pay for the pm fees rather than have them deducted from the rent payments?
Thanks.
I have two properties I want to start borrowing money for the expenses of.
Expenses I am thinking of are rates, water, strata, insurance, pm fees, maintenance/repairs/improvements.
This is the way I see it being setup. Any problems, now and in the future, with this setup?
- PPOR Loan with offset account (rents go in here and interest for all loans come out)
- Loan for IP1 (interest paid from ppor offset account)
- Loan for IP2 (interest paid from ppor offset account)
- Loan for IP Expenses. (interest paid from ppor offset account)
Should I have an Expenses Loan for each property?
If I keep only one expenses loan what happens when one of the properties is sold? Does it get messy with only being able to then claim the interest on the expenses from only the remaining IP?
Can you claim the interest on borrowings for expenses of a sold IP?
Am I allowed to claim interest on the money borrowed to pay the pm fees? Does anyone know of being able to pay for the pm fees rather than have them deducted from the rent payments?
Thanks.