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Watch out for the tax consequences of housemates = CGT unless they are boarders only reimbursing you for food and heating.

Yes, keep the 2 portions separate so that you can pay down the non deductible portion independent of the investment portion - if need be.

You shouldn't be using a deposit for the investment because this will mean your deductible debt is still higher. What you should probably do is to pay down the PPOR loan and then set up a new split and borrow the some for the investment. Don't just use redraw as this will result in a mixed...