Hi JacM, thanks for the reply!

I was advised at the time that it’d be better to out 20% down so it would look better to the banks and for serviceability. I was originally wanting to put a 10% down so as to free up more cash for further purchases. Would I have some sort of instant equity from putting a deposit of that size (77k) down together with the hope that the house is actually valued at more than what I bought it for? (Which I hope is the case). I have another 60k savings also, so I’m looking to either use that or the equity that I hope I have but still try to maintain a cash buffer.

I’ll be all about the 10% deposit for IP #2 :)

Thanks again, Knox.

Benny and PHP,

Thanks a tonne for the help and info guys, gradually making more sense haha! Legends!

Knox.

Wow Benny! That was pretty good! Haha. Thanks very much for the link to that, although I may need to read over it a few more times to understand it all a bit better :) AND thank you also PHP for getting back to me! The idea of IO+100% offset makes (a bit) more sense to me now.

Am I right in saying that using this method I’m basically freeing up more cash to purchase more IP’s?
I’m a bit of a dummy when it comes to tax.. How does maximizing my tax deductible debt benefit me? (sorry about that one lol)
I understand equity is built up over time as values increase, also with reno’s and paying down the principal etc. If I don’t pay down the principal do I just sit and wait and do reno’s/fix ups on the property when necessary to gain equity? Because using equity is a good way to purchase more IP’s right? Or do people usually pay a bit off of the principal on their own terms?

Thanks again guys

Knox.