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per this post http://www.somersoft.com/forums/showthread.php?t=36853 it would be easy for the ATO to say you are operating a contrived scheme to gain a tax benefit, yet recently I read a finance dude suggesting somehthing to the effect of: with a share margin loan to prepay the interest from a...

not sure what you are getting at... a plain bank account usually has a credit balance - so how is this generating a deductible interest component? if you are saying you are reimbursing to it, then it doesn't matter if it is bank account, credit card or crisp 50s in the safe, it is where it is...

in fact this is probably the biggest downside to build and hold, as you often need to make payments prior to being able to complete and set up your new LOC

wow, harsh. ok, need to be careful. Regrow it sounds like it's no all round.

so... the practicalities of this thing. My wife built a home and I had to lend some cash to it to make it work, paying for little bits and pieces. It was then completed recently and rented out. She has now extended a LOC against it, using the equity upon completion, to cover the rent shortfall...

yep a very valid point - not sure of the answer. Seems to cloud the waters even more.

um... pay off the LOC? why on earth would you do that? you would be undoing what you have been working so hard to do - reducing non-deductble debt. The only reason you would want to do that is if you have no debt on your PPOR, no private debt, no plans for any personal expenses and really can't...

so... if you had a LOC against say your PPOR and you were funding interest on various properties, the odd repair bill etc etc, you would need to keep an enduring record of what has gone out against which property in case you sold one? And then you would need to credit your LOC with the proceeds...