PPOR to IP and IP to PPOR- newbie Ques

Currently have A PPOR and want to buy an IP. Being new to this property scene was reading a few of these posts -I have realised that if I buy another house and move into it I cant claim anything from the TAXMAN for this new house since the Purpose_of_the_loan wasnt Investment. Which makes sense. But does the mean I cant claim anything on the current house(which will be made an investment then) since the purpose of the loan (when I bought this current house) was not Investment either?

Whats the best way to swap PPOR and IP? (to be able to claim tax)

Completely different question:
Want to get an accountant as well- can anyone please suggest someone(in Northern Melbourne preferably). Or hints/tips on how I go about looking for a good one?

Also how much do decent accountants charge? (How do they "Calculate your bill" considering they must get a lot of phone queries etc). Sorry if it all sounds real trivial but gotta start somewhere :)
 
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I cant claim anything on the current house(which will be made an investment then) since the purpose of the loan (when I bought this current house) was not Investment either?

As I understand it, as long as you don't draw down any repayments you have made to date, it should be fine - the purpose of the loan "changes" from being PPOR to IP.

Cheers,

The Y-man
 
As Y-man said - if you haven't drawdown "extra" replayments on your existing loan then when you turn the PPOR into a IP the interest on the loan then becomes deductable.

If you have made extra repayments then drawn them down to fund private purchases then you have contaminated your loan and have problems ... Note if you put extra repayments into an offset account linked to your loan then you are OK as well.

Regards,

Jason
 
And to put my 2cents worth in.

Yes, the original purpose of the loan for the PPOR was of a personal nature. However, when you convert it to IP, the current purpose of the loan is to fund a revenue-producing venture.

So assuming you have some debt against that property, the purpose of the debt changes and becomes tax-deductible.

(To be read in conjunction with the previous comments regarding redraw)

Doesn't help you that your new PPOR debt will be non-deductible and likely higher than your deductible debt, but as they say in the classics - "them's the breaks."
 
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