Because the interst on the home loan would increase and this would not be deducitble.

What do you mean by Vendor Finance?

Installment contract would mean you would not get title, generally, until you pay him in full.

Borrowing the deposit would mean you still need a bank loan.

You will find that GST doesn't depend on the entity, but on the property type. GST is payable on new houses whether you buy in personal names or company – but it will be built into the house.

But you should not use a company for several reasons

1. No 50% CGT discount.

2. flat 30% tax.

3. asset protection

Better to look into trusts and you may be able to distirbute any income from the trust to the company to offset any losses.

You should see another accountant too.

There is good reason they call me "Australia's leading property coach" !

People often get paranoid when trying to break the law

This is exactly what the ATO could do and it would be very easy with data matching. But just because the electricity was in another name doesn't mean it wasn't your main residence.

Are you willing to go into a loan with someone you don't know? What if they stop paying the bank?

What if they were to die? Divorce? Bankrupt?

vice versa too.

Did you live there?

If you did then it could be exempt for up to 6 years. What proof do you have you lived there? What proof would the ATO have that you didn't?

Get some legal advice as you may be able to legally terminate the contract.

If you don't proceed the vendor will often just take the 10% and leave it at that. But they could also sue you for any short fall.

I can point you to a recent QLD case where a developer was awarded approx $1mil for a small unit that didn't settle – value about $600k from memory.

You could be bankrupted from this so seek legal advice asap.

You should seek some advice on the tax consequences from doing that.

Jared. from this post it sounds like you don't understand the concept.

From an income tax perspective It would be better to positively gear every time because you would be making money.. But this is only part of the story. You will not get rich from positively cashflow alone – but probably worse off in the long run.

Capital growth is what you should be focused on. This is where you will make money. Aim for high rents as well. Rent is income and you want as much of this as you can get. If you get high growth with positive income this would be even better.