Strategy for upgrading PPOR with existing PPOR LOC

[chylld]

Trying to figure out the best way to move forward. Have seen some places that I'd like to move to, and want to know how to act when a "bargain" comes along.

Current PPOR is 50% loan, 30% unused LOC, 20% equity. Loan is almost fully offset.

If I pay the deposit (for new PPOR) with the LOC then the interest isn't deductible. If I pay the deposit with money from the offset then the LOC is just too large for capitalisation; feels like a bit of a waste and will take ages to get back up to LVR 80.

How can I get the LOC to work for me?

 

[Corey Batt]

Buy more investments using the LOC for deposits?

You've already touched on that the LOC can be used for capitalisation to help you slowly rebalance your deductible/non-deductible loans. Outside of this there isn't a huge amount of tricks available.