Hello,
I own two investment properties in Australia. Currently, I owe $260,000 on the property 1 and $200,000 on the property 2. I am considering refinancing the property 1 to increase the loan amount to $360,000. My plan is to use the additional $100,000 obtained from this refinancing to pay down the loan on the property 2, reducing its outstanding amount to $100,000.
I intend to move the money this financial year (FY23/24) while both properties are income-producing assets.
Subsequently, I am planning to move into the property 2 in January 2025 and make it my primary residence.
I would like to understand if there are any potential tax implications or issues with this strategy. Specifically, I am concerned about how moving into the property 2 might affect my tax deductions or any other tax-related considerations.
Thank you for your assistance.
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