My wife and I have recently emigrated back to Australia, and are new to the Australian property market, and crucially, accounting and tax rules. Just by being on this forum and going through some of the incredibly helpful posts I have been blown away by the expertise on show here. I would be grateful for your thoughts on an optimal strategy given we are starting with a clean slate. Think what you would do if you were a young greenhorn Terry with all the knowledge you have now! Scenario: Wife: Australian - no/low income Myself: Foreign - med-high income $600k cash available First Home buyers (Perth is under $430k no SD, under $530k reduced SD) Goal: Maximise investment/tax benefit, retain flexibility to move house once kids are factors Strategies currently thinking about (please criticize thoroughly) 1. Buy 600k PPoR1 cash, house in both names (needed for FIRB). Live x years. After x years buy IP1, mortgage on PPoR1 (tax deductible interest I understand). If desired, move into IP1 to live, but keep PPoR1 as PPoR. Follow Terry tips to avoid tainting deductible mortgage interest. 2. Buy 430k PPoR1 cash. Save on Stamp Duty $$$. Live 1 year. After 1 year buy IP1, mortgage on PPoR1. Move into IP1, but keep PPoR1 as PPoR. Are there better strategies you would follow? Does option 1 work or should I not buy PPoR in cash but mortgage (and why?) Does option 2 save me Stamp Duty that I would otherwise have to pay for an equivalent $430k IP? Am I losing out on full benefit of tax deductible mortgage interest? Thanks guys.