SearchLTC fund transfers
Christo asks:
(updated on Wednesday, June 27th 2018)
I'm purchasing a property into a LTC, which will be slightly cash flow negative in the first year or two. How do I offset the shortfall from rental income to mortgage repayment in and out of the LTC account? Do I do a personal once-off oan to the LTC? Should this be interest bearing? Or do I make up the shortfall by transferring funds monthly to the LTC account so that the mortgage can be paid?
Our Experts Answer:
Typically you transfer funds on a monthly basis into the LTC to meet the shortfall. Funds transferred are treated as a loan from you to the company. There is no necessity for you to charge interest on this loan.
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