Help on helping a family member

I have a niece that desperately wants to buy her own house.  She has a small deposit but she is in a low paying job and is only a casual employee.  The banks will lend her $180K but this is not enough to buy much at all.  I would like to help her out but at the same time I do not want to cramp my own investing down.  I need a bit of advice from all you experts on whether what I am proposing below can be achieved, or if there is a better way of doing this.I have an acre block of land that I am in the process of subdividing into two blocks.  It has taken three years so far because of this rotten council.  There is an existing house on the land and my intention at present is rebuild on lot 1 and sell lot 2.  The existing house will have to be slid onto the block I am selling, or demolished.  I was intending on offering the house as free to whoever buys lot 2.My thoughts now are to offer lot2 and the house to my niece under a rent-to-buy option.  This way she can get a large block of land, in a well established neighborhood with good growth potential.  Also, she will get a free house that she can slide onto the new block, raise and slowly build underneath.  This will further increase the value.  In 3 to 5 years time she will have build up equity and hopefully have a permanent job so that she can refinance through a normal bank.  If not, then I still have the house, with increased value and I can sell it at market value.I was intending on selling this land for $500K (plus free house) and the return according to Domain.com for our suburb is 9.8%.   I was thinking of charging my niece a rental of $465p.w. and this was based on a current bank rate of 6.5% plus vendor finance of 2% = 8.5%.  I was only going to charge her on the value of the land only which I have worked out to be $285K.  The rental rate would change according to current bank rates and she would also be responsible for all council rates, insurances, renovations and maintenance.  At the end of 3 or 5 years she re-finances and pays me $500k (less deposit paid initially).  If she doesn’t want to proceed then the house is still mine, plus any modifications. The major problem I can see at the moment is that both lots will still be in my name so I cannot claim tax deduction for the interest portion on lot 2 (which I will be renting out to my Niece).  Or is there some way I can get around this?  I already have a registered Company and a Property Investors Trust.   Is there some way that I can transfer lot 2 into this trust without money actually changing hands; after all it is going back into my own trust?  If I could do this then I could reduce the amount of rent I would have to charge because of the tax offset for interest payable.  $465p.w. is rather high for a young person to pay, particularly if they intend to renovate and build in under.I have never done this before so maybe I might be better off to enter into a joint venture with someone and share any benefits.  My intentions to-date have been to buy negative geared properties but I haven’t been able to start because I need to sell lot 2 in order to generate the deposit monies I need.Any suggestions please.