Refinancing and equity in investment property

Currently have a ip loan for approximately $370,000 in fixed rate that will finish on 1/4/22. Current rate is 2.59%.

Value of ip is approximately 650,000.

I do not wish to buy another ip. But will buy ppor after 4-5 years.

Then in perhaps 2025 I intend buy a ppor worth approx 1.5-1.7 million. Current ppor is fully paid and is worth 750,000. I intend to sell the current ppor at that time.

Is it then worth using equity in my ip when I refinance in April 2022, have a separate loan account and use it towards index funds like vdhg/ vas , keep it for the next 3-4 years and then sell index fund to pay off that loan, eventually use all funds towards buying the ppor in 2025-26.

Or what other options can I have?

 

Are you thinking the interest will be deductible after you sell the shares?

Tax Tip 272: Borrowing to buy shares and then selling those shares and deductibility of interest Tax Tip 272: Borrowing to buy shares and then selling those shares and deductibility of interest

 

It could be,but not alot of lenders allow cashout for share purchase.

 

Thank you. I wanted to deduct the interest as exp till I sell shares. Your post makes it a lot clearer and explained so well. Thanks.