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What I mean is that I currently have a mortgage of $600k. So in order to be able to transform this into a deductible loan once I turn my PPOR into an IP, I'm not allowed to pay it off, so I'd have to set up an offset account and slowly put $600k into it. For simplicity's sake let's assume my...

I'd rather take that risk than lock up $600k of equity (my current mortgage) that I won't be able to use to purchase other properties with.

But you can only have a combined LVR of 80%, so if you put it into an offset, in my example you couldn't get a LOC of more than 40%, effectively making your LVR 40%. I'd never turn my PPOR into an IP, if I ever move, I'll sell. Yields here are terrible. So I can't capitalise interest from...

I went to a property meeting last night and got an idea about reducing my non-deductible PPOR loan and essentially slowly converting it into a deductible loan for investment purposes, using my PPOR as security. I have in the past heard about using a line of credit to pay your expenses, but I...