Redraw IP to buy PPOR the renovate PPOR and turn it into an IP! confused

[Cartoon]

Hay guys im in kind of a weird positon where I have an IP with 80k equi at least sitting in it.

Now Im not happy living where I am now and would like to move out nad purchase a place of my own to live in. Im looking for a place than needs renovations and can be later rented out and turned into an IP.

I understand its prob better to draw on my IP for an IP but I also want to move out with my girl so its a little tricky.

What I was thinking about doing was drawing the equi out of my IP but allwoing it to stay just on the cash flow positive side and switch the loan to IO.
Use this cash to buy what will be my PPOR for the next 12 months or so, renovate the PPOR, revalue, redraw rent it out and do something similar again.

This all seems kinda backwards I know and I was thinking whats the best option, can I get another IP and a PPOR at the same time, this will strain the cash flow a little but I work that much I dont have time to spend my cash

Any Ideas on how this would/could or should work? Oh I hate my job and want to invest as much as I can and structure it well enough so I can use my places to pay down my debts and get a full time passive income!

Thanks guys.

 

[Rolf Latham]

Hi cartoon

If you borrow against the IP to buy a PPOR , the part that was used to buy the PPOR wont be deductible, while the new property is a PPOR.

Youd need to split the loan on the ip into the current debt and a separate loan for the new debt. Both can be IO

ta

rolf

 

[ozsupra]

The ATO will love you, your effectively offering them your soul...