Kris

Security for the loan is irrelevant. If you secure the loan on an investment property to buy a new PPOR then the interest won't be deductible.

Just excel with one sheet per property and then link it all back to the summary sheet.

Morts

PI insurance wouldn't help if you had debts you couldn't pay.

Plus it is very hard to rent a place now in Sydney. heaps of demand.

I don't know what grounds you would have legally. I would just put it down to a unfortunate event and move on (no pun intended).

You are throwing good money away!

You should have IO on the one you are renting out and PI (or ideally IO with offset) on the one you are living in. If you don't then you will be paying more tax.

Thanks Rob for that.

s114-10(7) says that the survivor is taking to have acquired the interest of the deceased at the time the deceased acquired it and the 12 month discount would be applied fro that date.

http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s114.10.html

How can you understand that? it is just my opinion.

You must do some indepth research, thinking and planning. And in the end it will depend on the property too.

With no capital growth you are probably better to keep your money in the bank!

If you invest in a cashflow property returning 8% then have you worked out what you will get after expenses. You must factor in high costs for repairs too.

Of course with leverage things may work out better and there could be some capital growth.

And, if you have that much cash sitting in the bank you need to get some good legal advice as well.

My view is that none of the interest will be deductible if you put the money into an offset account. Once it hits the offset it is no longer borrowings. See the Domjan case – although Domjan was denied deductibility because the borrowed funds were mixed with non borrowed funds in the offset.

Use a LOC as it is not worth the risk. Or use a term loan with redraw and have the funds sitting in redraw ready to invest. Make sure this is a separate split though.

As for the interest on the buyer's agent fee. This will relate to a property which you have not yet purchased. So I am not sure how it would be treated. Would be interested to know what the accounants think.