I am currently living in a house which I own and have no debts. I am building a new house in the same area and have taken out a loan for the purchase of the land and a line of credit for the costs of the building. Approximately 150k for the land and 200k for the house. I am planning to rent my current house but have the dilemma of owning it as far as negative gearing goes (of which I know very little about but is a term used all the time!!!) For the last financial year we claimed the interest on the land loan in our tax return as we thought we would rent out the new home and stay where we are. But now with another baby on the way we would like to move into the new house cause its bigger and the kids will all have their own rooms. How can I make the old house my investment property and claim on the loan of the new property??? Any advice greatly appreciated!