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I trust MPHT can distinguish between useful advice and bait.

I don't think it's daft, but I do think it's wise to thoroughly understand the choice that you're making, and the reasons for it. Paying down principal, if you believe that property is a good investment and are seeking to accumulate, may not be the very best decision with respect to advancing...

Oh, yes, I forgot to say - I agree with joanmc regarding what LOE stands for. :)

Yes, if you still have PPOR debt, and your IPs are held in your personal name, then you'd always put excess funds into the offset attached to this loan. It's once you've got excess funds again - ie more than $200K cash to offset your $200K PPOR loan - that you need an offset against your IP...

Show off! :p

But you'd be better off parking those funds in an offset. If you need to access the funds again for private purposes, you lose deductibility if you've paid down the loan. When talking about $20K, not a big deal, but if the numbers get big and you want to buy a bigger PPOR (for example), it can hurt.

Not if I can cotton-picking avoid it!