G'day Friends. This is my first post. So far I have been reading the forums and I must say this is a great knowledge base. There is so much information available. Well I have been reading the forums related to converting the PPOR into IP and now I understand that any new borrowing need to be for investment purposes for interest on this borrowing to be tax deductible. In my situation, my PPOR is worth $350K and the loan balance is $100K.The Original loan was $225K and I have $120K redrawable amount available.(yeah, it was a mistake for not setting up the offset account and now I regret it. I have been making a lot of extra repayments in last 3 years) If I want to buy a new PPOR and convert the current PPOR into IP, what are the options available? I understand that if I redraw from the loan account to pay the deposit and stamp duty for new PPOR, the interest on this borrowing will not be tax deductible. But is refinancing a solution? Can I refinance the existing loan to 80%LVR Investment Home Loan ($280,000) and use $180,000 (as deposit and stamp duty) to buy a new property (value $450K)? Is the interest on investment Home Loan in this way tax deductible? I don't want to sell the current PPOR now because I believe it will appreciate well in near future. I have been reading that setting up a trust can also be a good solution. Is there any link to read more about this trust and how it works, etc.? Thank you very much. Regards, Kam.