David,

My opinion is that the way to the second property depends upon a combination of equity and loan serviceability – unless you have both working for you, you will find youself contemplating an either/or situation as posed in your topic question.

I suugest that you get your principal place of residence sorted out first, then be patient and allow it to appreciate over a couple of years, as you wait you will probably pick up some pay rises over the years, and guess what – you have two factors working for you … BUT DO NOT GO TO THE BANK TO REFINANCE JUST YET … go and pay for some good financial advice on how to structure yourself (yourselves) for the next purchase and then, and only then, go back to several banks and see what is the best deal they can do for you.

This is how I got my second and hopefully will be the way I get more and more. Don’t expect it to happen overnight but plan for you to be able to get number 2 in the next 3 – 7 years depending on the markets in Holland.

Groeten – Kaybeesee