You should be able to get the bank to process the FHOG for you so that it is available at settlement.

If you don't move into your property straight away it will be subject to CGT. You will get a partial exemption based on the non-main residence days/ days owned x CG or CL.

eg. If you sell within 12 months then half of the gain would be assessed.

if you sell after 3 years then 0.5/6 x CG will be assesed

Cross collateralising is when you use 2 security properties for 1 loan.

eg. PPOR and IP used to secure the 100% borrowings on the IP.

The better way to proceed is to set up a second loan in the PPOR and then use this cash to fund the deposit on the IP.

See section 118-145 ITAA 1997

This state you can still claim your property as your main residence, under certain conditions, even if you are absent for a period of up to 6 years. The actual wording under subsection 2 is "the maximum period that you can treat it as your main residence under this section while you use it for that purpose is 6 years." So this would mean, or I would interpret it to mean, that even if someone rented out a main residence for longer than 6 years the first 6 years could be CGT exempt under s118-145 (if all other conditions are met).

ATO document Losses and CGT minutes, June 2010 supports this interpretation.
http://www.ato.gov.au/taxprofessionals/content.aspx?menuid=43140&doc=/content/00260551.htm&page=14&H14

BTW, what state is the property in?

That rate is a bit high – how much is the loan amount?

Would be best for you to pay the min on the investment loan and any excess to the PPOR loan – so this means monthly, otherwise you would be making an extra month's payment to the IP each year.

If your PPOR would become an IP in the future then probably best from a tax POV to change it to IO, but this also depends on your spending habits. Some would be tempted to spend money in an offset account.

It may be worth considering borowing more on the IP and keeping the cash for the car. IP loan would be deductible and lower interest rate than a car loan – which may not be deductible or fully deductible.

And, try to get a cheapy and make your money work for you.

Another terrorism incident in bangkok last week too!

You would be related parties – so can a smsf sell to a related party? I am not sure off hte top of my head. A SMSF cannot acquire but don't know about sell.

It would be a very good idea to get some advice first.
 

Sounds like you don't understand the concept of deductiblity of interest. This is determined on what hte borrowed funds are used for. So if you borrow against your old IP (eg LOC) and use this to pay down the new PPOR loan the purpose of the borrowings would be private and therefore the interest could't be deducted.

If A and B jointly own a property and A buys B's share the interest on a loan for this partial purchase would be deductible, generally, if that property is an investment.

This may entail stamp duty and CGT though. So you have to run the figures and see if the tax savings make it worth paying the stamp duty and CGT.

If your properties are in VIC it could be possible to do with only nominal stamp duty.