Richard, I am wanting to get ahead rather than tie up a large some of debt and mortgage repayments in a PPOR. I am open to alternatives.

Thanks Andrew. That was the original plan. I got a bit confused with a few people mentioning other alternatives.

Chris

Thank you greatly Benny and Jamie for the quick and detailed responses.

Benny, I read the posts you recommended and now feel I have a better understanding of the benefits of I/O loans and offset accounts. Thanks!

Jamie, you have reinforced my concern that the few extra dollars I may earn from a positive cashflow IP using an I/O loan isn’t going to provide much assistance in putting down a deposit for a PPOR or further IPs down the track.

To provide some further background, after reading the posts provided by Benny and my previous understanding I appreciate the benefits of taking out an I/O loan rather than paying down principle on a P&I loan. I am however ‘stuck’ on how I can use an IP to help fund a deposit on a PPOR if I am not paying down the principle component.

Thus, my next question if you have time to answer is; If I can generate equity in the IP through renovation or other means, what methods are available to access that equity down the track to use as a deposit for a PPOR.

Furthermore, is that a sensible strategy if I wish to purchase further IPs before or after purchasing a PPOR?

Thanks again for any advice or experiences you can offer.

Cheers,
Chris