Hi Terry,

                     Thank you so much for your reply !!! I bought my current PPOR for $ 350k with a 20% deposit  the remaining loan balance is now matched with the offset balance. The current value of the property is about 400k. The rental for similar next door unit is 1600 pcm. I have since last year managed to save about 80k which I would like to use as a deposit towards my first IP.

I did speak with my mortgage broker today and hes saying that I might need to get a split loan with 2 different banks and I would need to use some of my money from the offset a/c against my PPOR which I don't understand why ,as I already have 80k saved in a different account other than the offset, I will be getting $200k the day after my loan starts for the IP to place it in the offset a/c, the rent where I`m looking to buy is about 350 pwk and the property I`m looking to buy would be somewhere between 450-500k.

I  am hoping that Richard or someone else can help me understand what my mortgage broker really means .

My only goal at the moment is to own 3 quality properties outright move overseas for some time  without affecting my tax status and live off  the rent 

Thanks for keeping my spirits up and making me believe in something I've always dreamt of achieving , just got a few questions though :

1. Is there something that you would recommend is absolutely necessary for me to do when you talk about careful planning or does it just mean loan structure and things 
2. Few people Ive spoken to are saying that it would only take max 160-180k to build a 3dbr townhouse  of 200 sqm
3. Why do you think It might be hard for me to get a construction loan in the future ? 

thank you kindly 

Regards

Ash

HI everyone ..thanks for the replies… @ catalyst I would be selling one of my overseas property hence sure of getting a large lump sum…
@ richard thanks for the reply … I`m going for a loan with NAB interest only , wanted to go for 10 years however could only qualify for 5 years, and the Broker said after 5 years I can just fill in a simple application and get the interest only loan term for further 5 year , is it as simple as it sounds to fill the form and get the interest only term extended ?

Richard would you be kind enough to know the answers to the below examples which have been going in my head …
1: If the 7% variable interest only loan balance is 350k and the offset balance 300k then what would be my monthly repayment , would it be 7percent of 50k or still be the same .

2: what will be my monthly repayment if the loan balance is 350k and the offset balance also 350k.

Richard you mentioned something about not having loan with lenders such as st george, cua etc… are there any issues with them ..

HI Nathan … How are you ? First of all let me tell you my mums become a Big fan of yours after I showed her this forum. , .. and has started to bend towards getting a IO loan instead of a full P and I …. your example explains things very clearly thanks for that…

Could you explain me as well that the interest only loan that I can find are 7 years max and then you pay off the principal .. does that mean only after 7 years of paying interest you start a new loan which will be P & I this time cause the interest only loan period finished or I have to pay the principal straight away … ?

Many thanks for your time

lol… terry youre right , Youre right here as well.. I started two posts cause I dint know where exactly my situation fits…

HI guys thanks for still looking after me… @hbbehrendorff , I would really want to buy a 2bdr unit  not far from cbd… I am currently getting one like 15k from the city  for 200k… which I think is a good deal ,  what do you guys think ,as if I do go ahead with buying it , how much loan and how much deposit should I put… ? Also I dont know why but I cant get my head around this IO loan idea as  my understanding  says the House will never be mine as I would not be paying any Principal back… Instead cant I do a P+I loan and get a bit of less cash flow but once the loan is paid out start getting a higher cash flow?

@terry , I really want to do what you say in relation to free up as much cash I can for my PPOR.. However My Mum is Adamant on getting a house  with a bit on land at the back , anyways …

Do you guys think what Im doing is right like getting a unit f  as my First Home around 200k, taking about 100-120 k loan P + I, then putting The remaining money in an offset account for about an year and then get a second unit with around with around 70k deposit which will be my new PPOR for some time, Put my first Unit on rent , then build my PPOR  with a deposit of $ 100k… and put the second unit on rent as well…

Is all that Im thinking possible and am I choosing the right path or am I just dreaming that things are just gonna fall in place…

@ terry what do you mean by properly documenting my loan so that my partner doesnt get a peice of my cake if things turn ugly ?

Thanks people… Youve all  been very kind…

HI guys thank you so much for replying back … I really appreciate your help and guidance… I spoke to my Mum , and she still wants me to borrow  as less i can for my first house or just buy it outright so that we are not paying a lot of interest  to the bank ..
But what I want to do is buy a small unit  a 2bdr around 250k, with 100k deposit  and take 30 year loan , and leave the remaining in a offset account and use it later as I want to buy land in the new estate that will be released in 2014 in Maribyrnong and build my PPOR there and put the first property on rent .  DO you guys think what im trying to do is Sensible and a good strategy .. ? this is where me and my mum have an argument at …. 
 Im 25 single .. got a permanent job for 48k, can borrow upto 250k , no Debt at all .. except for a 5000k credit card .

thanks heaps guys .. appreciate you sharing your knowledge and experience