Thanks for responses. The reason is I wanted something closer to my kids school that my kids could use when needed (across town). Its too expensive to move (stamp duty and houses are worth more near my kids school). If my husband buys a small apartment and rents it to me then can we tax deduct any loss? I get that there will be no gain as he is renting to me and I will have to pay market rent, but any loss on interest only loan after the supposed rent changes hands could be a tax deduction? It sounds dodgy when I write it down like this:)