Turning PPOR to IP..negative or positive geared?

There are lots of parts to say about your current invest.

First .. you do realise you have 6 years to be away from your PPOR and still claim it as a PPOR and receive all the capital gains from that? At the end of that 6 years you can either return to the property or sell it. Thats gotta be worth a cracker to you .. you can have someone paying half your PPOR bill for you and you reduce your exposure to the debt by half or more ! FULL CGT exemption .. but no depreciation allowances or interest deductions. Sucks on one account  .. but profit on the other.

Transferring between person to company .. or family member to family member is not a great way to save on tax unless you started with that as the main reason for the deal. Unless you are dealing with larger folios or multiple properties .. bundling into separate names attracts transfer duties and is an expensive way to solve an issue that should have been straightened out in the first place. In other words .. if you are going to run a large company structure or a small one to minimise on tax .. start that way from the outset. Re-arranging assets once title has been exchanged can be a ludicrously expensive procudure to minimise any tax you receive. And on that .. there is always the chance the tax department will change the rules on you. Think trusts .. as they used to be.

Presented with a deal where you have a bad egg (because you are dealing with building defects and legal issues) to take to the market, you'll reduce your chance of effecting the best sale price. Wait until all builders defects and warranty issues are off the table to assure potential purchasers of a solid deal. I make money purchasing bad eggs, and waiting for that .. so I know what I'm on about. The difference between a bad egg and a solid deal can be up to 20% of final sale price .. so its worth that security.

By the way .. you can still run better deals in the current market. Mashing together a couple of properties and splitting a block into strata title .. i revalued it and borrowed against a couple of the properties without need to sell. Gearing with OPM on the rest of the deal .. i am getting 22.7% Gross on the deal .. coupling to 18.3% net after expenses. Its all about gearing and how you work the deals .. NOT how the deal exists on the market.

As far as working in overseas or interstate markets .. it requires you to be on top of the legal requirements .. obligations and permissions 100% of the time. Read a couple of posts in the overseas section to recognise what sort of requirements you need to be fully aware of the dangers posed by investing overseas. Become your area expert .. or .. roll the dice.