You guys have given me a lot to think about.

My goals? I have subdivided before, but I find that unless you are a builder, you really don’t make a lot unless you keep the original house and make it a hammerhead, so no, I wasn’t intending to subdivide the one with more land, but thought it would be sellable in the future to a developer.

Ongoing…[Read more]

Obviously, the one in the better suburb is priced higher, even though it is less than the median for that upcoming suburb. I was originally thinking that if I had more to spare after selling my current home (which is worth more than most homes) I could do more to invest as my capacity to earn is very limited. But on the other hand, if a house has…[Read more]

Thanks, Richard.

I thought Derek said that the new loan (for another PPOR) would be nondeductible because it would be for me to live in (which was my original question). I was trying to confirm if the new loan can be against my current home which has no mortgage on it, it will be tax deductible because I will rent out my current home. Apart from…[Read more]

Thanks, Derek. Just one last question.

Since my PPOR is not mortgaged, is it not possible to take out a loan on it (although the original loan is not line of credit) and therefore the loan will be against it instead of the new property which will be my place of residence? I thought that was what equity loans were about.

Thanks for your response, Derek. I need to move to escape a bad/violent situation as my ex has moved nearby.

The reason I was not too fussed about the non-deductible debt is I already have a property loss that is carried over (due to the fact I couldn’t use it to reduce my taxable income as I haven’t worked).

I feel reluctant to sell because of…[Read more]