8. Fletch borrowed $500,000 from a bank at a commercial interest rate of 10% pa to purchase a 'negatively geared' residential investment property. Immediately after acquiring the property, he engaged a real estate agent to advertise the property, but was unable to secure a tenant for several months. Fletch's interest expenditure for the current year is expected to be three times the amount of the rent he will receive from the tenant. Advise Fletch about the extent to which he is entitled to deductions in respect of his interest expenditure. Would your answer be different if he had CS leased the property to his brother at a 50% discount? ned with 8. Fletch borrowed $500,000 from a bank at a commercial interest rate of 10% pa to purchase a 'negatively geared' residential investment property. Immediately after acquiring the property, he engaged a real estate agent to advertise the property, but was unable to secure a tenant for several months. Fletch's interest expenditure for the current year is expected to be three times the amount of the rent he will receive from the tenant. Advise Fletch about the extent to which he is entitled to deductions in respect of his interest expenditure. Would your answer be different if he had CS leased the property to his brother at a 50% discount? ned with