Apologies, didn't realize there was more comments to read after the first two 

Well done Jamie, nothing like turning a bad situation around for the good of all concerned.

Fine dining indeed. 

Without knowing the specific dynamics of your financial situation inclusive of future goals both short medium and long term have you considered purchasing the IP at 90% or even 95% therefore preserving capital for the next purchase?

First step would be to go interest only on your PPOR with a linked offset. Place ALL savings in the offset as well as salarys and any other form of income . In fact any $$$ you have should be consolidated into the offset account. Get the RIGHT broker to help you do this. 

Seeing the RIGHT financial planner could be helpful. Many are not pro property and many don't understand lending structures, from my experience. 

All the best with your journey. 

If you are going to buy your own place one day in the future then it is advisable to go interest only with an offset account and save the difference that you would normally pay towards the principal amount. 

Two major reasons for this is;

1. You preserve the principal loan amount for max tax deductions.

2. The funds being amassed in the offset can be used as a deposit on a PPOR when you are ready to purchase.

Without knowing your overall financial position, it would likely be better for you to have an offset connected to you IP mortgage with interest only repayments and your salaries plus rent going into the offset account plus any other spare dollar you have lying around, unless you can get a better return than the current mortgage rate, taking into account you will be paying tax on any earnings.

If you decide to sell your IP to help buy your future PPOR then no harm done BUT if you hold onto your IP (recommended)  then you will have preserved the principal loan amount and also saved the difference plus any other funds added from salary etc whilst offsetting the IP.

If you have paid the IP loan down then draw the loan up for a PPOR purchase as you suggested then it wont be tax deductible as the "purpose of funds" is for non tax deductible debt being your PPOR.

So its not dribble but a smart and efficient strategy on how to best manage your finances whilst also potentially minimising the tax you are paying  .

Sit down with the RIGHT broker and get them to go over this with you as you are doing yourself a disservice if you don't.

Cheers.

Have some friends of friends who recently purchased a property through Members Alliance. I had never heard of them until they mentioned it. I decided to do some research and after a few minutes came across this thread and many other sites with what would you say, negative press!

Would be interested to see the finance structure as well as valuation of the property they bought. I am curious if they would have received a copy of the valuation?

Hi David,

Is your IP loan on interest only or principal & interest payments?