Thanks for the responses so far!

We do not have any personal non deductible debt or PPOR and are currently renting.

We do have equity available to access through the investment property’s growth.

Let me explain in further detail.
We have purchased a property and have plans and permits to build in the backyard and also want to renovate the existing front dwelling.

We are now at the point of either:
1. Revaluing the exisitng property and accessing some equity now to use for renovations then apply for construction loan or
2. Going for the construction loan and use our cash savings for the reno.

Just not sure which of the above 2 options is better? Can i claim deductions on the renovations i propose? (restumping, drainage repairs, new kitchen, new bathroom, add 2nd bathroom, painting, landscaping etc.)

We plan to purchase another inv. Property soon so need a deposit for that aswell.
We plan to keep both properties and access equity for future purchases.

Can anyone provide the pros vs cons?

Benson