I'm sorry but I don't see the point in this. If you refinance your IP's to pay off your PPOR then this extra lending is not tax deductible as it will be used for private and not investment purposes.

I agreed with you elkam, refinancing my IP's loan to pay off PPOR and personal debt will not be tax deductible, it will be a big NO NO. I know if I hang on to the IPs, the compound growth will be very good, however at the moment, I am paying a big chunk of interest on PPOR which is non deductible as it is not income producing assets. I am just trying to see whether anyone agrees with my logic or can suggest some other creative way for me such that I can keep the IPs.

Regards
catherinec

At least that is what I understood you were suggesting Contrarian. Sorry if I misunderstood.

If you have the equity then you might like to refinance either your PPOR or one of your IPs to clear your personal debt assuming this is at a significantly higher interest rate. You could do this via a split loan and for a much shorter period than your housing loan. This new loan will not be tax deductible either but would save you interest.

Personall I would not sell good IP's to pay off my PPOR or personal debt unless my back was to the wall.

Hope this helps
Elka

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