I would still have to find someone willing to buy, and the indicators aren't good, as nothing has sold in the complex for three years.

Thanks for that Jamie.

Terryw PPOR is paid off, but now the race is on to set up for retirement. However with the replies above as well as yours, I understand this will make more sense, especially as I do need to buya car in the next few years. I have an account set up to pay bills for the IP but don't know if it is an offset account (hopeless as I should know this, but it was only last year that heard about a change in a tax ruling where it said that it wasn't a good idea to pay rent off PPOR's because this could compromise tax deductions, so I set up the account to pay rent into and pay bills out off. It is also where the interest payments come from, so could be an offset. ). Thanks for the response. I will talk to my bank this week.

Thanks Derek, this is beginning to make sense to me.  I had assumed money in an offset account attached to an IP loan would only be able to be used for payments related to the IP.

From memory I would need to reduce the loan by about 50,000 to get to cash pos, as the property is a unit with high body corporate fees etc.so this would take me about 5 years. For me it's not about tax breaks I want to get to an income producing assessor in about 10  years if possible when I retire.