I don't understand that sorry.

There is no way to make that $10k deductible.

If your loan is $325,000 (including $10,000 redraw which is from extra payments) and you are moving out and into a new place, then the interest on the $320,000 should be deductuble (providing you had never redrawn from this loan).

You can then set up a new separate loan for say $20,000. This $20,000 could be used towards the new PPOR, but the interest would not be deductible because it is private purpose borrowings.

You could then get a separate loan for the PPOR with another lender or same lender. If you have other cash and/or use the $20,000 loan then you would not have to cross collateralise the loans.

(PS. this is why you should never pay down a loan and why an IO with offset can work out better).

Yes.

Taking money from a loan, including a redraw , is new borrowings.

Broker would likely get a new upfront commission from the new lender. This could be the motivation.

Watch out for withdrawing money from the loan as if it goes towards the new PPOR then the interest won't be deductible and you will have mixed purpose loan.

Possibly wouldn't include interest unless you didn't claim it along the way. Also incl buying and selling costs, commissions for agents, advertising for sale, legals etc

The interest on the $265,000 loan will not be deductible. But it may still be worth doing, but make sure this loan is a separate split. so you don't contaminate the existing loan on the property. $175,000 loan should be deductible.

You cannot use the main residence CGT exemption because you will be claiming the new house (or claim old house and not knew house).

If your house is in VIC you may be able to buy the house off your wife with no stamp duty and borrow the lot. This will create a large deductible loan with a large cash deposit for the new house. Will save you heaps potentially.
But watch out for asset protection and estate planning issues.

Good news Paul

ps when are you coming to Sydney again?

if they don't defend it in court, then could be quick. file a statement of claim, wait 28 days get a judgment and then try to get the money – but then they may apply to set aside the judgment. Or more likely, they will just pay.

Of once they are served court judgments they will just probably pay. If they want to fight it then maybe 6 to 12 months.

Harry,

Good in theory again, but very hard to implement. Why would a partner take all the risk and give you a bit of the profit?

You could use a unit trust (to take part of the risk) and protection your ownership position. But there are many things to cover.

IO will usually automatically revert to PI at the end of the IO term.

You can then, or before, approach the bank and ask them to extend the IO term.

Gluttons for continuing education points too.