Currently living in own property, seeing increase in value over the last many years. Plan to refinance and put forward the extra money to purchase a new home to live in, and turn existing home to investment property. Assume I am able to refinance and draw $100,000 from existing home, and use it as downpayment to purchase a new home.
My questions are:
1. Can I do the above? Is the interest on $100,000 redraw still considered tax-deductable?
2. From CGT perspective, if I get a valuation report of existing home, prior to turning it into investment property, will CGT based on this valuation or the price I paid when first bought the property?