Negative gearing on refinanced property

In 2012 i bought apartment in sydney and lived in there for 5 years, this was owner occupied property. Then i bought house in sydney as IP.
My family liked house so much that they want to live in the house and let out apartment.

We paid off 50% amount to bank and outstanding loan on apartment is 50% remaining for which we have kept remaining 50% money in offset account.

When we bought house as IP, we borrowed full amount.

Question is :
1) If we want to live in House , can we convert house to owner occupied ?
2) If we want to let out apartment, can we convert apartment to IP ?
3) Once point 2 is done, can we refinance apartment ?
4) Can we claim negative gearing on apartment after its refinanced ?

Please advice.

 

1. Yes. But no deductions.
2. Yes
3 yes. But only refinance to the outstanding amount of the loan will be tax deductible. Unless specifically for further investment, any extra won't. So it could get messy unless you split the loan carefully. Get advice first.
4. Yes. But the only interest on existing outstanding loan amount.
Marg

 

Yes to all

But the interest will only be deductible to the extent it relates to borrowings to acquire an income producing property