Guys, I have a reverse situation: Property One – Purchased in Dec 2006 and I lived their with my partner until Feb 2008;Property Two – Purchased in Jan 2008; and moved-in in Feb 2008 Now want to sell the Property One. What would be my best option? Use Property One as PPOR until its sold (as CG is higher there) and start using my current residence as PPOR once the property One is sold? Do you need to get the Property Two revalued (by a local valuer or real estate agent) around the time I have sold Property One so that I have some proof of  market price when the property was converted into PPOR.

And adding another layer of complication, what base value I’ll be using if I decide to subdivide the Property Two (just separate  part of land, build a small dwelling) and sell the new dwelling. And I’m assuming that I’ll be entitled for 50% CGT discount upon the sale of this dwelling and will be able to receive 100% CGT concession if I sell PPOR after living there for minimum 12 months (from the date Property One was sold). 

The Govt grant may cover the stamp duty & other costs but if the location is not attractive there won't be much of capital growth and a small cash flow positive investment can become a break-even capital investment if you can't find tenants quickly as noted above by Jadamo76 (also see properties for rent in Point Cook – which was a hot area for investors several years ago). And if this is the case, why bother buying? And my friend, if you don't know the area well, why would you invest there – don't you think it will be more or so like gambling your money? leave your money in the bank until such time you have  found a place you want to invest in in your neighbourhood. Believe me I have seen so many interstate people buying properties in Victoria with a hope that their money will grew – never happened as the strategy only sounded great on a piece of paper.

Subject to sale of my house – won't work unless you are offering a price which simply exceeds owners expectations.

2007 Holden Viva – a small car but does what I need.

I have seen such syndicates run by the accountants of some wealthy individuals which works well so long it is run by a trusted advisor. usually they have run such syndicates under a company name to avoid/ minimise individual liabilities. You can also borrow against the property if you can't find enough investors and the proposed LVR is low with limited recourse guaratee from the directors/ shareholder. Let me know how you go with this idea.

Try Archicentre. http://www.archicentre.com.au.

I have used them and found useful also they certainly have good PI cover. A friend of mine had termites problem within 12 months of their inspection and Archicentre covered for the 'fix' without any major drama.

Solomon10 – Couldn't agree more. I wish these politicians had a bit of brain and could think like a 'normal human being'. I'm anxiously waiting for likes of Palmer or Twiggy (who has a bit of cash) to challenge this case in the High Court so that we can get this delayed until this Govt goes. I'm not a supporter or Labour, Liberal or Greens and believe in voting for the candidate and not the party but I guess they have left me with a very little choice but 'donkey vote' in the next election.

plus the legal fee (Terry you forgot to mention)

They will all ask you one question – why do you need to access these funds and if the new loan will help you generating income.

As the guys said above – banks looks for primary exit being cash flow (your wages in this case) and then consider the secondary exit (your property). Don't forget, they are interested in making money and which is only possible if you stay with them (and pay interest to them) and by selling someone's property its more work for them to just recover their money.

You perhaps can consider reverse mortgage' but again that may be considered on various other factors and certainly won't be offered by the big 4s.