Residential Investment - appropriate vehicle?

[fungus pudding]

Hi Fungus,

Just as background personally I'm seeking to build up a portfolio over time and as such I'm not actually intending on selling (ever) however given that I would be buying this one with a friend then circumstance may require that I sell the property (or buy it off him) at a later date.

So if I'm reading your right, if the property is under our joint names then we are able to deduct interest costs to derive a taxable profit?

That sounds like a far better arrangement than buying with the ultimate aim of selling.
Of course interest is deductible. What you pay out in interest obviously reduces your profit, and it's the profit you pay tax on. The ownership structure doesn't change that.

P.S. It doesn't matter what you borrow against. The property you are purchasing, your own home, your mate's home or your uncle's caravan if you can get away with it. It is the purpose you borrow for, not the security given to the lender, that determines its legal deductibility.