In which state?

Why do you want to do this? 

Do you already own the two IPs or do you only own IP #1 and you are hoping to buy IP #2 ?

If you already own the two IPs, are they both held in the same name?

To clarify Scott's suggestion:

Richard Taylor (userid Qlds007), or Jamie Moore (Jamie M)

TerryW is a lawyer ,.. unless I've misunderstood somewhere along the line and he is a double agent hehehe.

Ray – depends on your tax bracket.  You work out your profit, you add that to your taxable income that year and you are taxed accordingly.  So if you are in the 37% tax bracket before you add your profit (ie based on the salary of your day job) and you are still in the 37% tax bracket after adding your profit, you pay 37% CGT.  Note if you hold the property for more than 12mths you get a 50% discount on your CGT.

All that said if you are doing a development, you are creating new dwellings and as such GST will apply as well.  You need to talk to a good property accountant to understand what you are up against, and to be sure GST is accounted for correctly in the contract of sale when you initially buy the place, and again when you offload it.

which of your IPs has the highest interest rate?  that is where ALL your offset money should go.

Premises being used to grow marijuana?  That's "using premises for illegal purposes".  That's a 14 day notice to vacate in VIC.  Refer to page 2 of this doc:

http://www.consumer.vic.gov.au/library/forms/housing-and-accommodation/renting/notice-to-vacate-to-tenants-of-rented-premises.pdf

Just issue a notice to vacate and that's that.

Good onya ING!  Now for some playground peergroup pressure.  Will the other banks follow?

Hi Pru

The answer to the question of "When should I start investing" is "as soon as you can".  The reason is that "time in the market" is a strategy that does not tend to fail.  You buy a place for say $200k, you rent it out, and each year you put up the rent.  Meanwhile the value of the property is going up, and eventually the mortgage payments are so small relative to the rents coming in that you almost don't notice the mortgage any more.

Jamie has already indicated that 95% lends are doable.  On a $200k property, that means a $10k deposit, plus as I recall somewhere around the $7k mark for stamp duty.  Is something like that achievable for you in a year or so?

PS Jamie is a very well respected broker on these forums, maybe give him a call and have a chat and lay your plans and timelines so you have some direction and you know exactly what you need to do.

Banks are not the only lenders these days.  Search this forum for "vendor finance".  You'll see

Thanks for Sharing Ashley!