Convert old PPOR into IP and buy new PPOR

Hi guys any tips would be appreciated!

1st PPOR lived in for a while with some equity build up, now decided say to move somewhere else as new home. bank naturally would want borrowing capacity based on having some rental income, so say I decide to converting 1st PPOR into IP, ie lease out 1st home.

1. With the advanced repayments in the 1st home, am I correct from tax pov to withdraw the excess repayments, park in offset account and then transfer to the new 2nd home loan once the new loan is set up by bank? Given now 2nd loan is principal home?
2. When would ATO want a property valuation done for cgt purpose? With the economy now, would it be prudent to get a valuer now (ie housing prices are still high) and then lease few months down the track? So potentially any price drop is not cgt impact if later selling?
   
3. What happens if I decide to move back to 1st & then make 2nd home a IP? Isn’t it confusing for tax purposes? not recommended?

 

1, correct in what sense? Redrawing is borrowing money and the interest won't be deductible

2. When it first becomes income producing

3. No tax issues until you sell. If you move back in within 6 years property 1 could potentially still be CGT free. But that would mean property 2 subject to CGT. Or you could still count property 2 as the main residence and have property 1 as the non-exempt one.