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No valuation needed if going from IP to PPOR s.118-185 ITAA97 http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.185.html

You need tax advice and this is something most brokers are not licensed for. Just think it thru logically and you should be right. Deductibility depends on what the borrowed money is used for. Borrowing to invest in a savings account or an offset account is not investing so that is your first...

I think renting out the place may be a good idea. You can retain it CGT free and can always sell down the track if you need to. Changing the loan to IO and setting up a 100% offset is the right way to go. Put all rents in the offset and all incomes and this will save you interest. Make...

Just be careful with this. Get good advice or you will lose deductibility and contaminate the loan.

You don't give interest rate, but assuming 6.5% IO, then: Expenses Interest pa $315,000 x 6.5% = $20,475 Running costs est 20% of rent = $4,680 Total Expenses = $25,155 Income Rent = $23,400 Profit = Income - Expenses Profit = $23,400 - $25,155 = $1755 LOSS But, this is not...

Why not sit down with excel and do some different scenarios and see how each pans out. Then you can make a more informed decision.