Hi, I'm looking at a new loan for a PPOR
If I take out an I/O $100k loan using my PPOR as security to buy my PPOR...then I pay back that 100k, so the loan balance becomes zero, then if I redraw this 100k to buy an IP, are the interest repayments from now on, tax deductible (since balance on loan becomes zero, interest now being charged (on redraw of 100k) is clearly being used for IP/investments)?
If I take out an I/O $100k loan using my PPOR as security to buy my PPOR...then I pay back that 100k, so the loan balance becomes zero, then if I redraw this 100k to buy an IP, are the interest repayments from now on, tax deductible (since balance on loan becomes zero, interest now being charged (on redraw of 100k) is clearly being used for IP/investments)?