In responce to the original question....Hope no one allready answered cause I couldn't read through all the post.get a life guys.......the key words were
' use the first house (the one I'm living in) as an investment property (negative geared)'
If you rent the house you are currently living in and move into the new house any tax advantages in regards to negative gearing and depriation are gone..gone.... DO NOT WAIT FOR THE SPLIT LOAN CASE THAT IS FRONT OF THE COURTS TO RULE IN THE SMALL INVESTORS FAVOUR....THE ATO WILL WIN...
The only advantage you will gain is in selling the original property, becuase you have lived there the capital gains will be reduced.
If you have to invest in real estate .....bad time right now...wait 18 months ..... then purchase land and build a house/flats on the land and depreciate...much better tax saving than negative gearing..... People who own positive geared property always make money.
