Hi all, I am very new to this. And looking at changing my PPOR into an IP as we have found another property that suits us better. I have been reading a lot on this forum and now realise that we have stuffed up in how we have payed our current loan. We have paid our loan out almost. And it would not be deductible at tax if we were to create a new loan on the house. (Is this correct?). My plan is to create 2 loans one for Old PPOR (now an IP) at 80% of the property value interest only. And the remainder into the loan of the new PPOR. Basically I can not claim any of the loan of the IP at tax. What are my options? Also I have calculated that we could be gaining positive cash flow from this property. I have read people say sell and buy another IP but this property has development potential in the future and is in an up an comming area. My third though has been to purchase another IP and offset it against the two property's. But I don't want to get in too deep yet as I am learning this game. We would probably wait 12 month before we did this too. We only have a short time to work out finances as we will be putting an offer on the other house.