Hi
I'm wondering if it is possible to add "holding costs" to an investment loan.
Specifically, consider the scenario of buying a 350,000 investment unit (inclusive of all up front purchasing costs).
Say I borrow 400,000 - have 350,000 owing, and 50,000 available for redraw.
Could I draw down on this 50,000 for "holding costs" as needed. I refer to costs such as strata fees, insurance, rates, interest, property management fees, repairs/maintenance etc?
I'm specifically asking from a taxation perspective, not from a banking/finance perspective.
It seems to me that the purpose of drawing extra on the loan in the above scenario would be for the purpose of investment, as the expenses relate to holding the investment.
If it is allowed. Are there any negative implications of doing this?
I really appreciate your time!
I'm wondering if it is possible to add "holding costs" to an investment loan.
Specifically, consider the scenario of buying a 350,000 investment unit (inclusive of all up front purchasing costs).
Say I borrow 400,000 - have 350,000 owing, and 50,000 available for redraw.
Could I draw down on this 50,000 for "holding costs" as needed. I refer to costs such as strata fees, insurance, rates, interest, property management fees, repairs/maintenance etc?
I'm specifically asking from a taxation perspective, not from a banking/finance perspective.
It seems to me that the purpose of drawing extra on the loan in the above scenario would be for the purpose of investment, as the expenses relate to holding the investment.
If it is allowed. Are there any negative implications of doing this?
I really appreciate your time!