JTW
Thanks. Renting out current PPOR is certainly an avenue I want to investigate. It would save me a big chunk of commission. With same tax breaks through negative gearing we could do that and either buy new PPOR or rent and buy another IP.

Lifexperience
I don’t know anything about cash bonds but if it could possibly give me more serviceability then they are worth checking out. Serviceability is the main problem at the moment.

We definitely aren’t after the expensive house or ‘junk items’. The house was built with creating equity in mind (I would settle for a nice modest 4 bedroom home in the burbs); we need to upgrade our 11yr old car for safety reasons’ and I want to be able to take my kids on camping holidays or to NZ to visit their grandparents. I agree with your ‘basic principles’ 100% about not buying things that go down in value and I hate having to spend money on a car.

Hopefully with a pay rise coming in Nov I might have the serviceability to give me a leg up in PI. The mortgage broker is one we have used previously and I just want to put a few scenarios to him with converting our P&I loan to IO if we rent it out; plus see how much more lending my pay rise will give me. I wouldn’t use him for investing advice.

I have spotted some books on this forum that I do want to get hold of. I have been busy finishing off our house and now there is too much good sport on TV late at night (Cricket, NRL, AFL, Tennis etc…). But I need to get cracking as I realise education is a good tool for PI.

I am still considering the selling our PPOR option as my most likely course of action as I feel this would put us in a position of strong serviceability when it comes to buying IP’s.

Thanks for getting me thinking Lifexperience.

Steven
Cheers. Found that out big time when organising our construction loan in 2003. Some banks would lend us $130K, others lend $280K (it even varied if your kids went to private schools or not). Go figure… Found our mortgage broker a huge help.

C@34
Toys are definitely not our go. Sorry I got you guys confused when I put in the ‘quality of life’ purchases line. We HAVE to upgrade the car unfortunately or get a scooter that carries 5… I meant spending money that makes our life more enjoyable and lets us do more as a family. Thanks for your reply.

Cheers

Darjovu

‘Build a Bridge and Get Over It!’