"First step is to have your PPOR revalued to see how much it's really worth (your bank will do that) and see if you can borrow against that value."

How much does it cost to have my property valued, I understand that a bank can appoint one on there behalf or I could get a private valuer, is this correct? if so which is better for me?. Can I 'sweet talk' a valuer into getting a higher valuation or is it strictly based on recent sales data in the area?

I've decided that paying off our 15k car loan first is the way to go.
The second stage would be to
1. Pay down as much on our home loan as possible to create more equity
or
2. Save up cash in the bank for a deposit
or
3. A bit of both
Of the options above what is better for us?

I asked the commonwealth bank about how much expected rental income they take into consideration when calculating serviceability, they said 80%, does this vary from bank to bank?

Does anyone have an idea on figures for "fixed living" expenses from banks might be for a couple with no children?

Yes we are "full doc" we borrowed 100% on our property.

Unfortunately selling up and renting to purchase an investment property is not possible in our situation.

"The bank will only take into account the purchase price on the contract as marked price, no matter how much the 'real' market price is."
Can someone please explain this to me, just can't seem to get my head around it.

I read everything with an open mind and will not base my decisions 100% on advice from one person.

Thanks again, I'am glad I made this thread it has boosted my confidence allot as has got me pumped!, good to talk to people that don't question everything about property investing or call me crazy for wanting to take on so much debt.