Thanks for the clarification Richard.Although I assumed Dan was referring to the redraw portion of the loan only. I suppose if I'd known 6 years ago that the property was going to become an IP, I would not have been paying any of the capital off, and may not have put in as large a deposit, but you live and learn right?I will still redraw on the…[Read more]

Thanks Dan and Richard for your comments. 'The test for deductibility of interest is, 'What were the funds used for?' So, in your situation, the interest would not automatically be deductible, just because the security is an IP'That pretty much clarifies it for me.Cheers,Billy. 

Hi There, I’m new as well!Can anyone comment on a similar question to the above, however, my situation is, having recently (in the last six weeks) converted my primary residence (of 6 years) to an investment property, can I increase the loan on the now investment property, but only up to the amount the property was originally purchased for, ie o…[Read more]