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Debt Reycling Question

Discussion in 'Investing Strategies' started by bkar1617, 31st Mar, 2010.

  1. bkar1617

    bkar1617 New Member

    Joined:
    31st Mar, 2010
    Posts:
    2
    Location:
    Sydney
    Guys, I currently have a PPR loan with 3 sub accounts, one of which is an LOC and only used for investment purposes (buying property/shares etc). I also have 10 other investment loans supporting various investment properties. In order to fast track the recycliing of the debt in my PPR loan, can I direct all investment property rent income to the PPR (non investment loan) but pay all investment loan mortgage payments from the LOC (investment loan)?
     
  2. GregR

    GregR Reid Consultants

    Joined:
    13th Jul, 2009
    Posts:
    273
    Location:
    Berwick Vic
    A simple answer is 'yes'.
    There is no requirement that income is directed into any one bank/loan account as long as you can match the income and costs for your tax return.
    You need to make sure any draw down or use of funds from the LOC is solely for investment purposes and you do not mix private and business expenses.

    I have a preference to use an offset against the PPOR and direct income into that rather than into the PPOR loan itself as it can provide future flexibility.
    Greg
     
  3. wealth_creator

    wealth_creator Member

    Joined:
    19th Apr, 2010
    Posts:
    10
    Location:
    Everywhere
    I've been here for all of 2 days now. But I must say, Greg, you seem like a great asset to everybody here on the forum. Well done mate.

    I like your general point of view and next time I'm down Vic way I'm going to have to stop in and say hello.