Thanks Terry. As you say, some of of your last post was relevant and made good sense.

It is a good thought of moving in and out and avoiding CBT, i didn't entertain that idea at all. My only worry would be the ability to rent a property worth such an amount in this climate. I wouldn't want to buy an expensive property, move in and out and then be stuck covering the mortgage repayments and another loan/rent repayments.

My question was mainly related to tax effectiveness when my income picks up. Maybe I would be better selling, decreasing the mortgage on the new ppor, having a 100% offset account and IO loan and buying another IP to offset tax when i get enough equity?

SW