Rental Property - 7 Knights Road, Newcastle NSW 2300. On 16 February 2005, Olivia purchased a three-bedroom house in Newcastle in her own name at a cost of $205,000. Stamp duty and legal fees relating to this acquisition totalled $19,970 and were also paid on the same date. To finance the purchase of the rental property, Olivia borrowed $200,000 from Westpac. The bank paid this money directly to the seller upon settlement of the property on 16 February 2005. Loan establishment fees, totaling $500, were charged to Olivia on this date. The term of the loan is 20 years. Olivia paid the remaining balance of $5,000 in cash from her own savings account to fund the acquisition of the property. When she purchased the house, Olivia was notified that the previous owner/builder constructed the house in March 1994 and that the original construction cost of the house was $95,000. Further, on purchase it was obvious that the plumbing of the house was badly in need of repairs as there was a significant leak in the bathroom that had damaged the floorboards and gyprock. Olivia engaged the services of a builder to fix the plumbing and repaint the interior of the