Would greatly appreciate some advice n the following:
I bought a house 6 years ago for $240,000 and have decided to buy another house and use the first house (the one I'm living in) as an investment property (negative geared). I have decided to re-mortgage this house (valued at $400,000) for an advance of $80,000.
My inital mortgage was $200,000, it will be after the re-mortgage $290,000.
If I use this as my investment property can I use the new mortgage as a negative geared or do I have base the investment on the original purchase price?
