Some great advice there for me to think about, the comment made by Jamie is exactly what I'd like to do  ("I'd consider tapping into the equity in IP 1 to fund the deposit/stamps on IP , That way, you can keep your $18k cash savings for emergencies (a good contingency fund is a must) and all of your borrowings will be tax deductible)

I guess now the question is how much I can comfortably borrow which i will have to liaise with a broker about. There is alot of different advice i'm getting about the market at the moment, I think it's time to buy now and within the next 6 months, others seem to think the Perth market will decline further. It's been 5 years since the boom but with the GFC there's just a heap of uncertainty. If anyone has downloaded the comm bank property guide iphone app you will see houses in Perth for sale at the moment that are cheaper than what they were in 06 and 07.

 Jack