Agree with Terry. I'd also be placing that $25k in an offset attached to your PPOR loan.

How much is your IP worth? Depending on it's current value I'd be inclined to do the top-up on it and leave the PPOR unencumbered.

Pretty standard structure really. Take out a LOC or a seperate IO loan against a PPOR to be used as a deposit towards an investment property. Nice first post Orks…..or are you somebody else?

ING is only 6.96% if borrowing more than $300k.

You could give Adelaide Bank a go – your broker might be able to get you 6.94% and their serviceability is pretty good.

Choicelend and Homeside (depsite being NAB money) are both still pretty competitive.

If you do stick with CBA, it will be worth while forking out the $350 p.a for the MAV package – sounds like your not getting the discounted rate at present.

Took the words out of my mouth.

Was thinking the same – unless the equity isn't enough to cover the deposit and completion costs.

That's baffled me also – you'll generally pay a premium for a LOC in terms of a higher interest rate. An IO loan will do the same trick…but will be cheaper

Sounds like it.[/quote]

Hi WW

Good to see you on propertyinvesting.com – looking forward to your contributions.

All the best

Jamie

Hi Keren

Yep, it's good to pay it down quickly. You can do this with your offset account. Basically, the money in your offset account will reduce the amount of interest you pay in your loan. If you have a $500k loan and $100k in your offset, your effectively only paying interest on $400k.

If this place is going to be an IP in the future, it's important to structure it right from the start. There is no point paying down the principle on an investment loan (particularly if your planning on having a PPOR in the future). From the example above, when you do convert this into an IP, you can take that $100k from the offset, use it as a deposit on your PPOR and leave the large $500k deductable debt on your IP. Hope that makes sense

Jamie

Cheers

Jamie

 Oh yeah, check out this months Your Investment Property mag – my wife and I (and our fur child pug) are in it.

Could be too late – it's been labled as a hot-spot for a while now. Prices may have already jumped…..

Hi Christine

Welcome to the forum – you'll find a heap of useful info and plenty of friendly people willing to offer a hand.

I'd start by educating yourself (which you've already started). Read, read, read is the advice I give my new investor clients. Go and rent out every property investing book at your local library. Get a feel for the differen't strategies, the pros and cons of each, ect. Lomas, Yardney, McKnight, Somers all have great books worth reading.

The more knowledge you have, the better informed your decsions will be when it comes to investing.

All the best.

Jamie

We (wife and I) found ourselves constantly managing the property managers. Reminding them of overdue rent, inspections that were never carried out, etc. We find it much easier self managing. Granted, we haven't had any nightmare tenants yet (touch wood).

I think I have just had bad experiences with the few PM's I've dealt with and I have no doubt that most are excellent at their jobs.