Thanks Terryw. So to the best of your knowledge, does the same high level principle hold true under newer tax law? (ie. repairs relating to income producing property that became necessary as a result of income production (eg. tenancy) can be claimed if undertaken in the same financial year, immediately after the property ceases to become income producing)?

Hi JacM and ChristianB

Thank you both for your advice.

I ended up going with Southwick Goodyear, a local company in SA that provides "Valuation & Property Services".

They have quoted me $330 (inc GST) for the service, which seems quite reasonable.

Thanks again for your advice

Peter

Hi Terry

Excellent advice. I'll do some more research tomorrow, and weigh it all up.

It certainly seems like an easier way to go.

Thanks for your time and efforts

Peters

Hi Richard

Thanks for your advice. Our present lender indicated they could do a stopped term deposit as a security, but I'd be happy to consider other options, such as just doing it at the time of the settlement of the new PPOR.

I'm mildly confused about the scenario you have described above:

If the original property was purchase for $100K and both of you had 50K share and the property is now valued at $200K then you could purchase the original share and a further 50K so in effect would have a new loan of $150K.

The current scenario is as follows:
– Purchase Price: $310,000
– Purchase Date: 5/09/2007
– Initial Loan/Principal: $248,000 DR
– Estimated Present Value: $340,000
– Present Principal: $216,060.34 DR
– Current Offset: $216,060.34 CR

If I'm reading what you've said above correctly, I could say that both my wife and I had a 155,000 share in the house at the time of purchase. However, over the course of time, each of our shares in the property  has gone up to 170,000. Therefore I could get a loan for 155,000 (my original share) + 170,000 (her present share value), to a total of $325,000. Is that what you mean? or am I way off track?

Thanks again

Peter

Hi All, thanks for your comments.

zac_moose – Pulling the money out of the offset and putting it on the new PPOR is fine, and that's not the problem here. The problem is more about the 120k odd of equity then still left in the current PPOR (soon to be IP). It seems a shame to have it sitting there saving me interest where I will be able to claim interest as a tax deduction (once it becomes IP), and at the same time not have it working towards lowering the interest on my new PPOR mortgage. – It's my own still fault. I thought I was being clever when setting it all up, but really I should have worn the pain of a few years of LMI for the long term gain of additional negative gearing.

Does anyone know what the deal is for transferring a title from a husband and wife to just the husband or just the wife? Assuming no marriage break down, I assume you're up for all the same government fees/duties? (ie. stamp duty & transfer of registration etc). We live in SA, not sure if that makes any difference.