Sorry the 2 previous posts seem to contradict each other. Is there a way they can build, and end up having their current home their IP with a $250K loan on it and minimal on their new PPOR. Hence taxable interest on the IP loan.
They would like to keep the property as it has alot going for it eg position etc. But it will not be worth it if they own it and have a $250K morgage on their PPOR. Idealy they would like to have the loan on the PI.

PS. great Forum, keep up the great work. Is an excelent resource for us newbies..