Hi Everyone! Not sure if this question should be posted here or in the real estate section? But here goes... We're first home buyers, looking to buy our first property this year. We also own a property overseas (inherited) that has about $140k in equity. We are considering using this equity to fund a large proportion of our deposit for aforementioned property, and are also eligible to claim the FHOG. It is likely that we will only live in the property that we purchase for six months (a. to be eligible for the FHOG; and b. because my partner's work has him relocating often). Therefore, we will probably rent the property out after the six months and turn it into an IP. Our question is, because the loan we're taking out against the overseas property is initially being used to fund our 'first home' we can't claim any tax deductions on it. However, once we move out of the property and start to rent it out, can we THEN start to claim tax deductions against the loan as it will THEN be being used to fund an IP? If we can't do both, does anyone know how you would calculate which would be the better option? (i.e. $7k FHOG or tax deductions on an $80k loan whilst on combined annual income of approx $150k)? Thanks for reading this post - hopefully it makes sense!