Let's say we own two IPs and we want to buy a new property that will be our future PPOR.To finance the new purchase, we can pay purchase costs for the new place if we sell just one property. However, is it better to sell the other IP to pay down the non tax deductible PPOR mortgage? This is our reasoning ... I post on here to check if we are on right track. choice: to sell IP and pay down PPOR loan Or To keep IP as the IP's CG is greater than the interest we would pay on the PPOR loan therefor after, say, ten years, we would be in a stronger position. IP is currently CF positive by $200 pa in real terms, and on paper after dep etc, it's a few thou neg geared. if we sold, we would end up with only 1/5 of its sale value in our pocket. In simple figures, let's say it sold for 500k, once we paid CGT, selling costs and loans, we'd have 100k in our pocket. The PPOR loan would be 550k, and by selling the IP it would reduce to a loan of 450k. It doesn't seem much. We can afford the repayments on 550k and would rather hold the IP untiL it was more to show. Are we missing something? Our strategy is buy and hold plus we've spent a lot on fixing the IP up and just got the IP to a "set and forget" stage. It's never been vacant in three years we've had it and it's increased well in value. So it's a solid investment. We bought the IP out of an equity loan on another property, and 30k of our savings.