Hi,
In purchasing an investment property and then setting up the loan, I found that I did not borrow enough to cover some unexpected maintenance/repair expenses that have come up in the first year.
Initially I used redraw funds from the mortgage on my PPOR to pay for these shortfalls. However now I would like to correct this and refinance my investment loan. Example - say I initially borrowed $600,000 for the investment loan, but then the purchase plus some subsequent repairs to bring up to standard took my total outlay to $625,000. The $25,000 came from my PPOR mortgage which means I effectively used my savings to pay for these investment related expenses. Now I would like to increase my investment loan to $625,000 so that I can free up that $25,000 to be available again for personal use.
My question - can the full amount of interest repayments on the refinanced $625,000 investment loan be considered as tax deductible, given that all the money went towards purchasing and expenses on the investment property?
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