The 150k was personal non-investment spending. The Interest on 300k loan is circa 20,000/yr even with council rates/water management fees etc included I would still be positively geared based on a rental income of $750/week (90% occupancy). I suppose the main justification I could have for holding on to the property would be if I thought I would…[Read more]

Thanks Jamie – A real shame that I can't maximize the loan using equity on Perth property in order to finance the 2nd Property in Brisbane based on the purpose test you mentioned. If this is not possible it makes more financial sense to sell in Perth than rent out due to positive gearing. Definitely no grey area here? When I read the quote about…[Read more]