Building 2 properties at same time....

One property will be PPOR, one will be IP.

Can I proportion 100% of my borrowings on the IP (not exeeding IP costs ie half of land/development costs and 1 build contract) and the remainder on the PPOR?

Property demolished was an investment property before subdivision.

How does the Tax office treat the loan if before build I have say $50k in offset facility (ready for establishing costs later).

I hope that as long as I dont claim interest higher than my costs then I can redraw later and still claim 100%?

Does this sound right?? - or have I confused everyone?
 
If you use any of the borrowed funds for the PPOR then the interest on these wouldn't be deductible.

It all depends on how much cash you have and the LVRs I think. Use all the cash for the PPOR and borrow as much as you can for the investment - using the PPOR as security if need be.
 
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