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  • Profile photo of lukeclaytonlukeclayton
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    @lukeclayton
    Join Date: 2012
    Post Count: 3
    September 4, 2012 - 6:07 am

    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 make a capital gain longterm? Difficult to be able to analyse all the pros and cons. Cheers guys.

    Profile photo of lukeclaytonlukeclayton
    Member
    @lukeclayton
    Join Date: 2012
    Post Count: 3
    September 4, 2012 - 3:19 am

    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 "loan balance as at the time the property becomes income producing" I thought it may be possible.

    Rgds,

    Luke

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