syd + melb grew 2% bris + perth lost 4%, page-31

I think you might want to check your figures.

"2% p.a on $500k using $450k of the lender's money is far better than 6% on $50,000 sitting in the local bank."

You will pay say 7% on the 450K in interest so that costs you $31,500 per annum.

You claim this as a tax deduction and get back 47% of the loss so you still out of pocket $16,695.00

Then you claim the 10K profit but you have to declare capital gain tax so therefore you lose more depending on your length of ownership.

All in all NOT a good investment at all you are losing money under your scenario.

I'd rather take the $3,000 in interest and pay tax on it at 47c. You still keep $1,590.00 after tax.

Compare that with a loss of at least $16,695.00 after tax and the numbers are there to prove it.