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^^^ this. My bank is happy to do splits and it keep non-deductible debt and deductible debt separate.

Page 2 of the document I linked to outlines both reduced capacity to borrow and how this may affect the number of investment properties an investor can purchase. If there are any errors in their analysis, I would be interested to hear them. http://www.deden.com.au/pdf/Cross-Collateralisation.pdf

"How does cross collateralisation affect the borrower? When a lender cross collateralises a borrowers properties, it has four negative effects on the borrower: 1. Cross collateralisation reduces the amount of funds a borrower can qualify to borrow, 2. It then also reduces the number of...

Rules To Keep Your Borrowing Tax Deductible 1) What the borrowed money is used to buy determines deductibility, not where it is secured. 2) Interest on a loan is deductible if the borrowed funds were used in relation to a property that is now income producing...

No, you're right. I forgot the loan against the PPoR was towards an IP, not to buy or pay off the PPoR. The PPoR had no loan at the start. The purpose of the loan was for investments from the start.

That's an interesting claim. Any supporting evidence? I say the interest on the 50k is tax deductible. http://www.ato.gov.au/Individuals/Income-and-deductions/In-detail/Investments,-including-rental-properties/Rental-properties-2012-13/?page=9#Example9 Quote from same page: "In cases of...

The interest on what isn't tax deductible?

I have cross-collateralised a PPoR with an IP and I would not do it again. It is more expensive to set up in the first place and more expensive to unwind. Most importantly, it limits my options for funding future purchases. A better structure would be to have an independent loan against the PPoR...