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Great post. Especially the first line. I don't know the answer to it as I have no idea about the area in qn. But IMO IF you can project out an upward movement in the absolute value over a 3-5 year period, hold onto it and make it more efficient. OP has equity, offset this negative cashflow...

IMO, if you've got 70k in equity elsewhere, i'd only consider selling if the market is likely to continue to move backwards. Otherwise hold onto it, do what you can to minimise cash flow losses, and then fingers crossed over the next 5 years it moves back up in value again. Haven't dealt...

To re-fix a loan, unlikely to need another full application. Also some lenders wont require a full application for swap between P/I to I/O. Its probably not possible given OPs indication, but potentially worth pushing on. More general point is to maximum the efficiency in the cash flow -...

The 12k figures based on a 1 year fixed, given most lenders are competitive here (within 30-40 bp of each other), may be able to hit those numbers with current lender. The above is good way to think about it. Holding will depend on assessment of recovery possibility and timeframe.

Sandman, just throwing another idea, without knowing the full extent of your situation, you may be able to refi down to a MUCH lower rate in September, and bring down your interest expense to ~11.5k-12k. With 15k in rental income - 1.5k on PM, 3k in strata, 2k in others, 11.5k in interest...

Check tax advice on this - I think it may be deductible. If you set up a new loan on your PPOR (split it so its easy to track) - then the purpose of that new loan is investment related. Therefore it may be deductible. Not an accountant, so I cant say for sure, but that's how it generally...

Is it really that costly per week?! Whats its numbers after tax? $290 pw is around 15k p.a. $240k loan is what, 12kp.a? Other fees amount to 12k p.a?! Using the opportunity cost argument, assuming you have the money available TO sell - what else can you do with that cash? Your options...

Great advice, but cutting your losses on this is likely to involve a 20-25k exit cost (quick sum) - 18k loss + other fees. That may restrict OP from making that choice.

No LMI credits for different securities.