Hi all,
"Paying your IP expenses from an LOC (except interest) and then diverting those funds to your PPOR"
I have seen this mentioned a few times from experienced folk but I have to admit, I don't quite understand exactly how it works and what the main benefits are (assuming tax deductibility and paying down your PPOR faster).
Can you please explain how it works and the benefits? Do you pay back the expenses into the LOC each year or let it build up? Why do you exclude interest from this as this is obviously the main expense? Is it something that's more effective when you have a higher number of properties?
Thanks in advance
"Paying your IP expenses from an LOC (except interest) and then diverting those funds to your PPOR"
I have seen this mentioned a few times from experienced folk but I have to admit, I don't quite understand exactly how it works and what the main benefits are (assuming tax deductibility and paying down your PPOR faster).
Can you please explain how it works and the benefits? Do you pay back the expenses into the LOC each year or let it build up? Why do you exclude interest from this as this is obviously the main expense? Is it something that's more effective when you have a higher number of properties?
Thanks in advance