Like I and others are saying.  Constructive feedback.  Offer your ideas and feedback, but there is no need for nastiness.  I cannot understand why you hang around on this site.  It seems that we all make you miserable so one would think you'd be happier if you were not surrounded by us peasants.

Do look into this before you jump in, or when each of you goes to try and make your second IP purchase you might get a shock on your serviceability calcs which will affect how much you can or cannot borrow.  In many cases, all three of you will be considered responsible for the entire loan should the others default on their portion of the payments.  So even though you only own a third of the title, you will have all of the responsibility.

You would be well advised to let your insurance company know that the property is no longer a rental but an owner occupier.

You might also want to look into whether you'd save some cash by refinancing.  Perhaps the interest bill is higher for an investment property loan than it would be if you are living in it.  Have a chat to a knowledgeable mortgage broker to see.  Richard Taylor (userid Qlds007) and Jamie M are both brokers who contribute regularly on these forums.

I agree with Terry.  Interest only. 

After a couple of years of hiking the rent up, the rent exceeds the holding costs and the surplus can be used to start chipping away at the principal.  Why would you use money you had to go to a job to acquire to chip away at the principal when you can instead have tenants chip away at it for you in tomorrow's dollars?

I don't think that is how CGT is calculated…

Pro-rata is a concept that becomes relevant if you lived in the property for a period of time and rented it for a period of time.

My understanding of CGT calcs are:

Cost of acquiring property …. minus holding costs …. minus sellling costs…. equals Capital Gain.  Let's say your capital gain is $150k.

If property has been held for over twelve months, divide the capital gain by 2.  So $150k / 2 = $75k.

Work out what tax bracket you would be in if you added your capital gain to your day job salary.  Let's say it is the 45c tax bracket.  So your CGT is (0.45 * $75000) + (0.015 * $75000).  That 0.015 is the medicare levy.

That's how I believe it is.  Certainly if here is some pro-rata at play I would love to hear about it because that would suddenly put A LOT more projects in the profitable category and this would please me.

Could an accountant on the forum perhaps clarify how cgt is calculated?

I am not sure why though there is quite a bit of unused space at both the left and right side of the screens.  On a mobile phone it for some reason makes it impossible to scroll all the way to the right.  This is probably because I can't figure out how to use my phone properly hhehe.

Among all the things I did to get comfortable with my decision to invest in an area was to watch the for sale and for rent ads in http://www.realestate.com.au for months… to see what cost what and how long it took to vanish from the screen (ie how long it took to rent).  Look at the pictures so you can understand what an unrenovated place costs (or charges in rent) compared to a renovated place.  And of course check the location of each property on googlemaps so you can get a feel for which areas cost more and why.  When I found that my target area had things on the rental market for maximum 2 weeks (ie it took max 2 weeks to secure tenants for pretty much every single property) and with a yield of over 6%, I was comfortable.

I had my accountant set everything up for me and have since purchased a property under my smsf.  Indeed I had to produce all the kinds of documents you are talking about, and my accountant sorted it all out.  If esuperfund is setting you up, why is it taking 4 weeks and why are they not handling all these things for you?