Here is a magic method.
Set up a LOC on your house (if you have the equity).
Using this LOC only for investment purposes you borrow to pay all IP associated expenses such as rates, insurance, repairs etc.
This frees up cash which can go into the offset on your PPOR or to pay off your PPOR.
All investment loans should be IO with no offsets yet.
All rents and other income such as wages, tax returns etc should go into the offset on your PPOR.
Terry, we rent now. So no PPOR loan.
One of our IPs have some equity. And all our IPs need some renovation. I am considering to set up a LOC against that IP and pay expenses of ?ll IPs through that LoC. Will this complicate tax calculations? (All loans and LoC in same ownership structure)
And if we change one of the IPs into PPOR in future, will there be any complications? We won't use LoC to pay for any PPoR related expenses.