I believe so – but this may need to be apportioned over the total time. eg if you sell within 12 months and live in it 6 months of this time then it was an IP for 50% of the time you held it so you may only be able to claim 50%.

Also borrowing costs (such as LMI and app fees etc) are not capital costs and can be claimed against income over 5 years.

I think yield should not be regarded as profit but as return on investment (before costs). it doesn't take into account borrowings just return based on value.

There is no transfer required if you wish to change your property into an investment. You simply move out and rent it. Not really a loop hole in my opinion as the requirement for the FHOG is to live in the property for at least 6 months. As long as you do that you are abiding by the regulations.

I agree that you should only deal with a major bank, or you will regret it later when you want to change the loan, get a LOC, access equity or exit the loan.

Possibly you may even have a capital loss.

You will need something better than the "bank said" though if audited.

Banker, I started going direct as well. I agree that it is much easier -It was so hard dealing with the broker channel. – But now am no longer in finance.

There is no use in just buying something for the sake of it. Especially if it doesn't perform. Also not tax effective to put down such a large deposit and pay off the loan so quick. What about if you want to buy a place to live in later on? You will have no cash left so will need a large loan – which won't be deductible and you will be paying tax on the rent you receive with little deductions.

St George may do it too.

I think you will find it is way too complicated for a book to cover it all and be up to date. Things, especially in tax, change rapidly.

You will need a good law book to cover the legal aspects and a different one to cover the tax aspects.

A couple I have are:
-The Trust Structure Guide by Harwood Lawyers
-Drafting Trusts and Will Trusts in Australia by Kessler???
-Trust Law in Australia by Ong

Yes, that is a good point JJ