PPOR Purchase with IP Equity

Wanting to get peoples thoughts on using equity from IP's as the deposit towards a PPOR.

Obviously this will be non-deductible debt, however being cash poor but having access to equity and good income in a rising market should outweigh this. PPOR would also be a renovator with significant value-add potential.

Is there anything I'm missing? Obviously using equity to buy another IP and saving cash for a PPOR deposit would be ideal, however being late Gen Y'ers we want what we want sooner rather than later.

 

Nothing missed - pretty straight forward, you will just be borrowing more and the interest won't be deductible

(its amazing how many argue it will be deductible)

 

Been in the same situation a few years back when I bought my PPOR via taking out equity from IP but my plan was to convert to IP later on so took an interest only loan with 100% offset LOC . So yes you'd pay interest that is not deductible but with offset I have a bit more flexibility around my money and when I move out, the debt would become deductible and maximized so more tax efficient.
Good luck !

 

This is my strategy going forward. I've got a bit of equity in two IP's which I hope to access to go towards the purchase of my PPOR. Waiting on the sidelines at the moment as Sydney may be nearing the top and there are signs it may be turning a corner (in the west where I will purchase anyway). I will be looking to value add and potentially add granny flat. Split loans etc to debt recycle and purchase shares to compound payment of PPOR debt.