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True, and I wonder how you would go when you wanted to top up the loan to use the equity.

Thanks Alex. Do you know if you can carry those losses forward for a time when the company has an income (the IP becomes substantially positively geared)?

Yes, have looked into this and have been told an accountant can organise a 'Shelf' Company to purchase a property in or transfer a property to (think you then have to pay stamp duty if you transfer from your name to company name though). Apparantly a 'Shelf' Company is a generic company and...