Try this -> http://www.facs.gov.au/internet/facsinternet.nsf/housing/nras.htm

Thanks Richard, I appreciate your explanation.  JD.

Hi Richard,Yes – it was a bit of a mess.  But, we thought we'd tidied everything up about 12 months ago.  By consolidating back then, have we created a problem for interest deductions?  What sort of overhaul would be required?The second question was more of a hypothetical – not planning to do this, but wanted to understand the implications if we…[Read more]

Hi,Keen to understand this also, as we have been considering turning our PPOR into an IP.  We currently have our loan set up as an IO, with an offset.  However, about 12 months ago we refinanced and consolidated some other debts.  Does this have any impact on the potential deductibility of interest?Also, if we were to go ahead, and then in 6 mth…[Read more]

Thanks Pud & Elka for your replies,I hadn't considered renting our home…  It possibly wouldn't allow us to increase our debt levels immediately to start investing -however,  we would have created our first IP   It is possible that we could rent somewhere similar for about $1000 less per month – but, we'd need this $1000 to contribute towa…[Read more]

-744 in current situation, but if we sold our PPOR and bought two IPs – same debt level, same asset position (just a shift from personal assest to investment), reduced annual income (or living expenses, taking into account us paying less rent than we are currently paying mortgage, and a small +CF on each of our IPs) – we immediately move to +737 Th…[Read more]