Just remember this:
– pay off non deductible debt first.
– interest is calculated daily, so reducing the interest payable on day 1 will have a compounding effect as you will be saving interest on interest from day 2 onwards and this saving will be exponential.

so,
– pay minimum on your investments because these loans are deductible.
– Obtain the income tax variation as this will get you the tax savings every week
– the tax savings means more money in your offset (against your nondeductible debt) or loan which means great and quicker savings.
– make sure you are claiming everything possible, depreciation, trips to the accountant etc

Yes. otherwise you will be tying up your cash and won't be able to use it without tax consequences.

eg what would happen if you paid your loan down by $50,000 and then needed $50,000 to buy a personal item (such as an ivory back scratcher)? You would  need to reborrow the money from the bank, but couldn't claim the interest on the $50,000 redrawn. Whereas if you had used an IO loan with a 100% offset account you would have saved the same interest, but still have the cash available without the tax consequences.

Deductibility depends on the purpose and use of the funds borrowed. So if you borrowed $200,000 for an IP and that IP becomes a private residence then the interest on that $200,000 will no longer be deductible.

What you could do is talk to a tax expert about setting up a LOC on your PPOR, in addition to your $170,000 loan, and then use this loan to pay the interest on your $170,000 loan. ie borrow to pay interest. The freed up cash, together with wages and rents, can then go into a 100% offset account against the new loan (new PPOR, current IP). This will free up cash to pay down the private debt fast while increasing your deductible debt.
This needs careful planning thous, don't do it on your own

You can also keep your place exempt from CGT too by claiming the absent from main residence exemption for up to 6 years.

Prepaying will bring your deductible expenses forward. If you have exceptionally large income this year then it may be wise, if not then next year you will have a problem of little deductions – unless you prepay the next years again

I would have to agree with Angel.

You never now when you will need some legal advice too.

Under the standard contracts, in NSW anyway, you are only given a right of inspection once in the 3 days before settlement (going from memory here). Any additional inspections would be up to the vendor.

If I was a vendor and you had not negaotiated this prior then I would not let you in, as there would be nothing to gain from it, and the possiblity that you may find something else to complain about.

Going in uninvited would be tresspassing and this would be the case even if the area is not fenced (and this doesn't mean it is open to the pubic). Tresspassing is a criminal offence and you also could be sued too. There are also insurance risks, if you a tresspassing and the repair person falls through the roof on top of you and you break your arm, eg, you may not be covered by any insurance.

But, having said all this, why not just ask the vendor for permission to go in. If not just do the final inspection and check it out then.

You could ring a few in the area and see if they are on St George's panel.

Also try rining or talking to some St George people yourself as some may give them the valuer.

Also tell your broker to try asking his BDM at St George for help.

1. Yes, since the case of Steele. I don't think there is a time limit as long as your intention is investment.
2. 2.5% per year for 40 years for building works. Fixtures and fittings can be claimed at a higher rate over a shorter time.

I've just looked at a NSW contract.

cl 2.1 of the standard contract of sale stipulates the purchase must pay the deposit to the depositholder. 'Depositholder' is defined as the agent.

cl 2.4 also states the deposit can be paid to the agent.
cl 2.5 however states that if the deposit is not paid on time the vendor can terminate the contract, but this right to terminate is lost once the deposit is paid.

So, my interpretation of this is, if you had paid your deposit to the agent before the vendor issued the termination notice then you should be fine. Confirm this with you solicitor.