Hi,

Thanks for your quick response and the clear and detailed answer.

The reason for moving into the P2 for five or more years is purely due to some personal arrangements, saving some travelling time and also I would like to start trying the idea of property investment which I am quite new to. I think I would like to keep my current PPOR the P1 as my PPOR all the time even when I buy the new property P2.

Would you also be able to answer some questions I am still not so clear about?

(1)    If I bought the P2, then move in immediately, and I do not want to claim it as my PPOR during the years I live in. I am planning to pay interest only for both properties during the period, as I would rent out the P2 eventually. So when I rent out the P2 finally, would all the associated costs including stamp duties on the P2 be tax deductable? Would the initial loan, like you said, $384K,  I take on the P2 is classified as for investment purpose?

(2)    When you suggested to create LOC against the P1, why did you also recommend to pay off LOC ASAP? Would the LOC be attracting higher interest? And also, why is it necessary to go to another lender for the P2 remaining $384K loan?  I am not sure if my lender offers LOC or not, I am with WestPac on Rocket repayment loan, I guess I shall ask them about it.

(3)    As to stamp duty, your reply implies I would have to pay stamp duty on the P2, I thought stamp duty will be exempted for any property worth less than $500K as I did not pay stamp duty fee on my current PPOR, it now seems I am wrong. Is that the case?

Many thanks for your time.

Kind regards,

Qin