this is what id do but might not be correct or suit youthanks ss followers for the prompt response... its great to have the support that you arent totally insane
just to clarify, if there was equity available in the IP, it would be best to redraw the funds out and set up a new loan split IO..... but of course, if there is no equity, are you suggesting that its still good to repay and redraw out the funds?
ill simplify it
1) if theres no equity, pay the bare minimum (out of the offset) to create the equity needed to then redraw for a deposit for the next property if its an IP
2) if your purchasing a PPOR then you might want to just use the cash BUT
if your planning on renting the PPOR out a year or 2 down the track it still may be better to do option 1
yes, as its been used for an income producing assetunderstand.
so if for eg IP1 had excess equity via CG (not offset/ savings) and we redrew $100k equity to buy say IP2, and then IP1 became our PPOR, would the $100k still be tax deductible when IP1 becomes PPOR?
hypothetically
if IP 1 was actually PPOR you could do it and the 100k would still be tax deductible
anyone with equity sitting in there PPOR in effect has "Lazy Dollars" i think its called