Hey guys have already spoken to professional sources but looking for some further advice to help fix a problem of mine moving forward,
I have 2 investment properties the first one had a redraw account initially where all cash saving was getting parked into for a period of time before realising this was not the best structure and it was then refinanced to I/O with offset. The second investment property was set up I/O with a offset account from day 1.
I am now looking into a method of debt recycling by setting up a new bank account for the purpose of paying investment related expenses only. I wish to transfer funds from the first investment property which once had a redraw account into this new account and then use this cash to pay investment property related expenses rates, bills ect... to help make my first investment loan 100% tax deductible again because the purpose of the redrawn funds was investment related.
Is this a correct way to help me fix my mistake of putting cash savings into a redraw account?
My last question is could I purchase a new investment property set up I/O with offset and use the above method to pay all associated bills including mortgage interest and at a later date make this new investment my PPOR by this stage the first loan will now be 100% tax deductible again?
Thanks your feedback will be greatly appreciated.
Regards.
I have 2 investment properties the first one had a redraw account initially where all cash saving was getting parked into for a period of time before realising this was not the best structure and it was then refinanced to I/O with offset. The second investment property was set up I/O with a offset account from day 1.
I am now looking into a method of debt recycling by setting up a new bank account for the purpose of paying investment related expenses only. I wish to transfer funds from the first investment property which once had a redraw account into this new account and then use this cash to pay investment property related expenses rates, bills ect... to help make my first investment loan 100% tax deductible again because the purpose of the redrawn funds was investment related.
Is this a correct way to help me fix my mistake of putting cash savings into a redraw account?
My last question is could I purchase a new investment property set up I/O with offset and use the above method to pay all associated bills including mortgage interest and at a later date make this new investment my PPOR by this stage the first loan will now be 100% tax deductible again?
Thanks your feedback will be greatly appreciated.
Regards.