I have vacant land in Qld and have found you cannot claim any deductions for interest etc unless it is providing an income stream. However if I sell the property at a profit you can claim costs of the sale but are liable to capital gains tax and in NSW you will pay 2.5% stamp duty. In essence buy land / property that you can prove is delivering you an income stream. The other unnerving thing at the moment is the government is considering recommendations that capital gains tax and negative gearing provisions are to lucrative, I mdare say there will be changes made in the not to distant future.
