Where to park funds

Hi all Just a quick one

I plan on getting a personal loan to pay for any shortfall in my subdivision/development. After the house is built i will get it valued,draw out the equity and pay off the personal loan. My question is where to park the funds while i use them. If i was to put it in my normal everday account this may infect the funds and the 100% deductibility may be compromised. Cash would be best but i dont want to carry huge amounts of cash. I have an investment account that all my rent goes into and loan repayments are taken from. its not used for non investment purposes. Im thinking this would be the best bet to keep things clean.

Does this sound right.
 
Hi,

You can always open a new account. Park funds there and once you have used up the funds close the account. Any account keeping fees should be tax deductible. Although, you should be able to find accounts that have no fees.

Cheers,
Oracle.
 
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pardon my ignorance, can't you put it in an offset?

Yes i could but my only offset at the moment is my normal pay account linked to my PPOR. If i mix borrowed funds for my investement with general spending i will muddy things up and will not be able to claim 100% deductibility of the loan even after paying it back with equity from house valuation. I think oracle has the best idea. Open another account do all my transactions from that account . When subdivision is complete. Use leftover funds to pay off personal loan and equity loan to pay remaining debt.

Thanks guys
 
Best place for it, IMHO.
Assuming there is a loan in place with the option of setting up a 100% offset account.

true. I actually do have another variable interest loan that it could be attached to.Its no harder to do this so i think thats the direction ill go.
Thanks all
 
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