Bought a 2nd house - rent it? or move in to it? Hi all Just bought a second house this week, with settlement in 30 days! The original plan was to move in to house #2 and rent out house #1. My questions/thoughts: If we instead stay in house 1 and rent out house 2.. We will get more weekly rent for house 2 as it is 3 bedroom and a lot bigger (same suburb). House 2 needs a few things: A dishwasher installed, new deck, paint inside, rip up carpet, polish floorboards, new curtains.. Could I claim all/some of these things as tax deductions while it is rented? House 1, as we have been living in it, has nothing left to do on it. A rough calculation would suggest that we would be around $70 a week better off by staying in house 1 and renting house 2 (just by going on loan repayments and rental income) obviously there are expenses associated with it too. The main reason of wanting to live in house 2 is because it's bigger and a new project for us! However, if it makes more sense to rent it out for a year or so, perhaps that is a better approach first?