Investment unit first then PPOR

Hi clever people. We currently have a few investment units but have recently sold our own home. We're currently renting whilst our last child prepares to leave home, and are thinking about purchasing a much smaller property to downsize into structured as follows:

Buying unit as an investment with lowest variable rate and 100% offset linked.
Parking capital in the offset and renting out the unit for 6-12 months until child gets settled elsewhere.
Paying down as much of loan as possible in that period.
Renovation at lease end then move in as PPOR and moving load of capital and continue additional payments to have it paid off within about 3 years.

My questions relate to the renovation costs and claimability.
We're not too concerned about CGT down the track as this will be a long term residence and we hold a capital loss from some years ago.
What is claimable in this incidence? It would be a complete kitchen, bathroom, floors etc.

Aside from the warning that kids tend to come back (dang it!), is there a better option? Would appreciate any opinions/advice.

Taa

welcome to the good ship

I dont think the renos would be deductible

depreciable for the time the place is an IP, but in reality id expect that to be bugger all

Have you spoken with a planner re transition to retirement ( assuming you are of a suitable age and have the respources)

ta

rolf

Thanks Rolf. Yes, we have a planner and have discussed transition to retirement, although that's officially about 15 years away. This is part of the plan to bring it forward if possible. Will check with accountant re the deductibility - I seem to recall it was his suggestion some time ago. Will post the info for others benefit also when I find out. Cheers