See the old TR95/25
Income tax: deductions for interest under section 8-1 of the Income Tax Assessment Act 1997 following FC of T v. Roberts; FC of T v. Smith
http://law.ato.gov.au/atolaw/view.htm?locid=%27TXR/TR9525/NAT/ATO%27&PiT=99991231235958

see especially paragraph 42:

Borrowing used to repay an existing loan

42. Interest on a new loan will be deductible if the new loan is used to repay an existing loan which, at the time of the second borrowing, was being used in an assessable income producing activity or used in a business activity which is directed to the production of assessable income ( Roberts and Smith ATC at 4388; ATR at 504).

When you use a credit card you are really borrowing money. So this is a loan. When you pay from the LOC to the credit card you are just refinancing one loan with another.

I imagine that as long as you only use the credit card for investment expenses then the interest should be deductible. If you start using the card for personal expenses then you would get into a mess.

Check this with your accountant.

I worked with a guy once who rang about 20 shops to ask for their prices for a particular mobile phone. He shopped around and saved about $100.

He later went out into business and paid the advertised price for a juice shop. He didn't even try to bargain them down. (later sold it at a massive loss).

There is a way around outright rejection and that is by having the parents buy the land with your deposit. Either in their own names or through a trust set up.

Don't forget some brokers and bank staff have little idea about finance in general and business in particular. Some cannot read tax returns and they miss out many things which could be added back to the clients income and this may make all the difference.

I remember when i was a broker I had a client who had been rejected by a westpac branch and yet I was able to get them a $500,000 loan with westpac.

If you sell you will be up for a lot of fees: agent, CGT, legals, loan discharges etc

And then a lot of fees on the new purchase: stamp duty, legals, loan fees etc.

I would suggest you do the sums and then get out your crystal ball and see if any extra growth in melbourne will make up for these fees.

(and if any money left over invest in a dictionary??)

A bare trust is one where A owns for B. No discretion at all.

I agree with APerry. Trusts would not affect servicing. If you can afford in your name then you can afford the loan in the trust – nothing changes, same incomes are used.

It may also be worth considering selling the IP and paying down personal debt. Do some sums.

If buying in your own names and transferring to a trust later on = stamp duty + CGT + loss of asset protection.

Sounds like it could be one of those expensive properties with an expensive loan so be careful. Don't trust them without doing your own independent research.

Your explanation is confusing too – and doesn't make sense. How can you pay a loan repayment into a LOC? Maybe you mean pay the interest on the investment loan from your LOC? if so, this can be a very good strategy, but the ATO has denied deductibility on some of these schemes, so you must set it up carefully and should consider seeking a private ruling before hand. Don't do it without the go ahead from a tax advisor first ( a licenced one too!)

You could chose to claim an exemption in full, under s118-145 of the ITAA 1997
http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.145.html

(but the new house will not be CGT exempt during this period)

or

apportion the gain over the period rented, s118-185
http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.185.html