I think your wording there is out of whack.

you cannot borrow to invest against superannuation. What you can do is set up a SMSF and the trustee can borrow to invest in property (or other single acquirable asset). ie you cannot borrow, but the trustee can (property held in custodian trust).

Sunsuper was voted one of the best industry superfunds in 2012 – recall reading it somewhere.

Realistically what can you do other than settle?

Keys are often an issue – many people don't have keys for various doors in their houses – they may never have locked the door with a key for example.

You shouldn't settle until you get vacant possesion as you will inherit any tenant problems.

Cleaning can be a problem. Do you have any special conditions about this? I had a client who sold and refused to clean and left stuff everywhere – a wardrobe full of clothes. She refused to remove them. I told her it wasn't nice to leave the house like that. In the end the new owners wore it as they wanted to move in and it could have dragged onlong for a long time.

I would suggest the old holding back $500 trick and see what they say. Some people just want their money so will agree. If they promise to come back and clean it later after settlement don't believe this – although it did happen to me last year. Seller came back and collected junk left.

You have no real way of knowing. Ask for personal guarantees – litle help maybe.

How is it calculated? Well if you would have to make reasonable effect to apportion the interest.

If you are renting out half of your house then maybe 50% of the costs. But if you are rent out half of your house for $200 when the market rate would be $400 then maybe 50% of 50% or 25% of the costs.

Only if renting at market rates, otherwise maybe a portion of the interest.

You can't claim deductions for boarders. Boarders don't provide income but just pay for 'board' ie expenses such as power and food.

But are your people boarders or tenants? Sounds like they are not paying market rents but paying more than boarding. Therefore I would guess you couldn't claim a full deduction for costs based on floor area, but may be able to claim a partial deduciton.

You will also lose the CGT exemption on your house (in part) so consider carefully.

I

 think your definition of spouse and defacto may be different to the legal definitions…

What is National Deposit Funding?

A lender that lends deposits? It could be good and may be a way to save LMI costs, but make sure you service on both this debt and the new loan.

Bob, I think you must have misinterpreted your accountant.

A SMSF has the sole purpose of providing for the retirement of its members. Members cannot benefit from the fund until retirement. This means all rents and capital gains stay in the fund until you reach the stage where you can legally take income out = meet a condition of release. You cannot benefit indirectly by using the property or renting the property – unless it is business real property and rented at arms length from the fund.