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Too expensive as nothing is deductible. The other thing is that it ties you to a place: I'd rather holiday in different countries and cities.

I stand corrected on the holiday home cost base thing. Thanks, all.

My read would be that capital items (renovations, etc) will be added to the cost base. Operating costs including repairs, rates and interest will be 'lost' in that they are neither deductible nor capitalised for a holiday home (private use but no PPOR exemption). Alex

Hold on. I don't get that. You're saying interest on an asset purchased for private use (but which doesn't have the PPOR exemption) gets added onto the cost base for CG calculations?

I have to say I've never heard of that. So if I buy shares with borrowed money, the interest on the brokerage will not be deductible and form part of the cost base? I've never heard of that, either. How about borrowing to pay for legals, which would usually be capitalised into the cost base?

Hi, Kenster, Not sure what you mean. Yes, stamp duty is a capital expense in that it's added to the cost base and not deducted up front. However, interest on borrowing to pay for a property and stamp duty is generally all deductible?