Implications of moving into an investment property for 6 months

Hi,

Firstly here is the situation:

1. We transferred to Perth for a 2 year opportunity about 14 months ago.
2. We recently bought our second investment property in Perth (settles Early Jan), with the deposit being funded by refinancing the other Perth investment property.
2. The intention was to continue renting at the property we are living at in Burswood, allowing us to claim the LAFHA until we return to Brisbane at the end of the work transfer.
3. Unfortunately, the landlord has just given us 60 days to move out and we are now in a tricky position because it is nigh on impossible to find a property that will accept a dog in the areas we are looking.

We are considering moving into the investment property when it settles until we move back to Brisbane in November next year, making our lives a bit easier because we will be able to do some renos on it, and also keep the pooch.

My questions to you are:

1. If we are still planning on moving home at the end of the two year transfer, could we still claim the LAFHA even if we move into a property we own?
2. Would this cause issues with the deductibility of the investment loan used to fund the deposit, because part of the money is being used to fund a “private” purchase?
3. Considering the property is going to be used to produce income when we move out, could we continue to claim deductions while we live there doing renovations etc?

I have searched this topic, but cant seem to find anything specific too our situation. I have emailed my accountant, but I can’t wait until Monday for an answer

Thanks in advance,

Q