Hi all, I have a question I would like to hear your opinions on. My situation is this - I plan to buy a property, and will be occupying this initially. I do plan to rent this out in 1-2 years' time. My question has to do with the tax deductability of the home loan structure. Ideally I would have an 100% offset account, into which I can deposit all my surplus funds in order to minimise the interest while I am occupying it, and when it becomes an investment property, I can then withdraw those funds for whatever purpose I see fit. The full amount of the interest payable on the loan at that point, will be tax deductible. However, will the same result be possible using a redraw facility? Say I make $50k additional repayments into the loan while I am occupying it, which will reduce the interest payable. Then, prior to renting it out, I redraw that $50k to bring the loan balance up again. At the point I rent it out, will the full amount of the interest payable be tax deductible? Or will that $50k be deemed ineligible as a investment cost, thus forcing me to apportion the interest payable? To me, it seems to basically boil down to whether the transactions prior to the property becoming an investment, are relevant. Any opinions on this? Thanks for any input.