Where do I park capitalised interest?

[Rob Williams]

If I borrow 100% funding for another IP, plus fees plus an additional, say, $25,000 to cover the interest shortfall for the next few years, what are my options in terms of parking that $25,000 somewhere?
Ideally, I'd like to park it in an offset account linked to another IP loan.
Can I do this, or is it then "contaminated"?

[Bazza]

Why not leave it in a LOC until you need it. There's no interest until you withdraw.

Cheers,

Bazza

[DavidMc]

No, it wouldn't be contaminated.

If you want to be sure best to ask your accountant.

[Terryw]

If could be contaminated if you were to put the $25k into a savings account mixed with other money. A LOC would be the best option i think.