All, My first post to this forum. A general question to those that know about Investment Property purchases and their tax efficiencies. Current Situation: PPOR: 100% equity, no loan, thus no repayments. PPOR not considered in this scenario and not for use as a cross security. IP: Owned 7 years, just refinanced with another bank. No cross –securitisation with PPOR, ie. IP loan is standalone, and I do not want to cross-securitise. IP-A Value = $1M IP-A pre-refinancing loan = $150K IP-A new Loan = $400K IP-A Loan = P&I at 8.5% IP-A Loan repayments are about $1,200pm (on original $150K) IP-A Offset = $250K cash in bank. IP-A - Costs greater than income with cumulative losses added to my tax return for the last 7 years. I want to buy a second IP. What is the best way to maximise my tax efficiency. The second property (IP-B) will be standalone and not cross-securitised. IP-B purchase price = $700K If I use the cash in IP-A offset as a deposit for IP-B can I still claim the Interest payments incurred on this $250K as costs against IP-B as tax losses or even claim them against IP-A costs? I presume I cannot offset these losses against IP-A, but can I offset against IP-B ? The reason to consider this is : 1. LVR is reduced for IP-B, and thus giving me increased equity ownership. 2. Reduced IP-B LVR will avoid mortgage insurance. 3. I will receive better interest rate on IP-B loan due to lower LVR. Joe.