PPOR and IP

[Nem]

I currently live in house1 which has never been rented out. I would like to buy new house and rent it out for up to 2 years, so I guess I need to get investment loan with IO payments.

After 2 years I would rent out my house1 and move into house2.

Do I have to advice bank about change (Since my "good debt" is becoming now "bad debt" after move). Do I need to let Tax office know and how??
What other things I should consider doing??

Thank you

 

[Terry_w]

Nope you just move.

Keep the loans high to maintain tax deductions. Use an offset account.

 

[Nem]

Thanks Terry!