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Simon's idea is this. Say you have a $500k PPOR, $500k loan, you have $100k extra cash. 1) Put 100k into the offset account. You pay interest on $400k. When you move PPOR, you use that offset 100k as a deposit for your new place. The old place converts to an IP, you have $500k deductible loan...

The short answer is: GROSS assets. Assuming (over the long term, anyway) that you will get 7% growth p.a. on all your properties, the bigger your gross assets, the greater your gains. That is, buying an IP and a PPOR, then in 20 years selling the IP to pay off the PPOR loan will be better...