Quote:
Originally Posted by Stefan
Option 2 is the best, and will be the most tax efficient, as all your interest for the property will be 100% tax deductible.
|
No, NONE of your interest would be deductible.
Stay where you are (in "Mum's" house) and look to subdivide in the future.
I'd be very cautious about getting into negative gearing at the moment, and about putting all your eggs into one property. (When you say that you'd have $400k to spend, I assume you're talking about a $320k Mortgage? That's a big millstone to hang around your neck.)
If you are looking for capital growth, and determined to play in the real estate market, then go for an old house on a large block. Stick to areas you know well, and remember "location, location, location."