New IP or debt recycle?

Hi
We have just sold our PPOR, currently renting until we settle on land then build. Will be building a PPOR including the land for approx. $540k total.

Prior to the sale of the previous PPOR my finances were:

PPOR loan: $250k - Bank A
Equity loan: $90k - Bank A
Investment loan $450k - Bank B

IP worth approx $570k
Old PPOR sold for $465k

Prior to sale of PPOR I had troubles keeping the $90k loan open - long story.

In the end I ended up having to pay out my $90k equity loan with PPOR sale proceeds.

Therefore I have paid $90k off the investment property and will now have to lend another $90k for next PPOR – non deductable interest!

PPOR loan will eventually be approx $420k in total.

I am thinking of getting some advice but wanted if there were any suggestions on here?

Not sure if I should get another IP this year or look at debt recycling (including possible paying IP loan interest with borrowed money).

Any suggestions?

 

Debt recycling will be slow. Buying another property to sell at a later date may enable you to pay off the PPOR sooner. And you can do both buy and recycle.