What are the complications involved in renting out our property from interstate?

Q.

I wish to move interstate and use our house as in investment property. It was always going to be an investment property hence our loan is interest only. What are the complications in doing this? Would I be able to claim construction costs etc when I have lived in it for four years, until we had finished building/landscaping etc? Would it be better to sell it and buy again? I would rather rent it out and buy again - finance pending.

If you lived in it before you rented it out you would be liable only for any increase in value from the date you moved out. I am hoping we can assume that the money you spent on the property would have added to its value and if this is the case they would be reflected in an increase in the base costs which is set when you move out. Therefore they would be taken into account for tax purpose if and when you sold. The main factor in deciding whether to keep the house or sell it is its growth potential.