yes, probably should get a valuation as of the date it ceased to be your main residence.

Thanks

here is the link

http://itunes.apple.com/au/app/commercial-property-made-easy/id541510448?mt=8

The legislation says

"118-145(4)  If you make the choice, you cannot treat any other * dwelling as your main residence while you apply this section, except if section 118-140 (about changing main residences) applies."

So you cannot treat the first house as your main residence if you treated your house overseas or the one in QLD as your main residence during the same period.

You will have to substantiate why it owuld be deductible. Possibly it could relate to expenses incurred in producing an assessible income.

Yes, it wont help with the finance, but if you were running a sheep farm it might be treated differently to a non-income producing house on land.

Thanks Derek

I will get some bells and whistles eventually.

Thanks guys. You can sign up by my website – beware it is very amaterish!

Hi Songrad

So you put down 20% deposit and costs. Lets say $50,000.

If you used cash that means you had money which you could have paid into your home loan to reduce the interest and your non deductible debt.

If your loan is at 6% then the interest on a $50,000 decrease would be $3500 per year.

This means you will have $3500 per year less in tax deductions for the next 30 years or so. Roughly a loss of $1000 per year after tax.

Another way to think of it is imagine if you had a spare $1000 per year to pay off your home loan – and that this is paid monthly and imagine the compounding effects

Yes, Celibacy!

Whether you could get a loan or not would depend on the circumstances. Best to talk to a broker about that bit. It may be difficult if your spouse has just bought a house, but the projected rental income from your property will be included in serviceability.

Also you may want to hold off a bit and do it down the track.