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Mry, what happens if this crosses financial years. Say I put down a deposit now for completion next June. I deduct the interest for the ye Jun 2010 intending to rent it out, then sell in June 2011 after settlement due to a change in circumstances. Do I then have to amend the ye June 2010...

Yes, the loan should be deductible. Deductibility is based on USE of funds (buying an OTP IP), not source of or security for the funds. Conversely, just because you take out a loan against an IP doesn't make the interest on that loan automatically deductible: it depends on what you use the funds...