Hi! i like this forum and looks like people get lots of good advice! I hope somebody can give me some insights... My husband and I have been planning for a while to buy a new house. Our first plan of action is to sell our current home and buy a new one- we have good enough equity so it was the best option for us at that time. One of our friends who have just started becoming a mortgage broker asked why we haven't thought about keeping our current property as investment and utilise the equity to use as a deposit to the new house. She gave us a negative gearing calculator and everything seemed good with cashflow etc. However, after doing a lot of research (and still researching) that not all loan amount will be tax deductible as some was used for personal use….and this was confirmed by an accountant. We will not have very good tax returns from the negative gearing every month which is vital to afford the costs of maintaining another property. Accountant advised that at this stage, it might be more reasonable to sell the property put as much deposit in the new house as interest is not tax deductible then in a year or two look at investing the equity made from the new house then buy an investment property. I guess our objective is if we are to do this, we want to make sure that our loan/finance structure is properly setup from the start (I think I like the RLOC structure) since we are now really serious in starting an investment portfolio. I am quite conservative and cautious so I want to start slowly but surely. Another financial adviser also recommended us to sell the property into a unit trust hence making all loans tax deductible and be able to negative gear. I know there will be stamp duty...i've done all my calculations and if all loan amount is higher then tax benefits will be maximised. My husband and I would want to buy more IP in the future...any thoughts?