Yeah thanks Tim. Makes it hard to know what to do.

I am in NSW and in an area that needs heating in winter and cooling in summer with the ducted reverse cycle system which, although cheap by camparison with other units being an inverter model, certainly puts the power bill up. I have heard there is technology around that enables you to have a gas fired power station type of setup for households to provide electricity. This is supposed to be cheaper to install and "greener" than solar. Have you heard about this or is anyone out there familiar wiyth this product and how do you rate it?

Regards

Mick.

Thanks for the repy Dan.

I thought I would be able to use the 9% equity I have which is about $38000 for the IP. we have been putting money into our home to increase the value and thus equity, but real capital gain is not there yet as we have only been here for 18 mths, but are expecting a kick in prices here soon (Mudgee) with all the mining activity going on. My wife and I have about $1500/mth spare cash to go towards and IP.  
I know that if using a trust, I or both my wife and I would have to go guarantor to the trust for loan servicing, and with the spare cash that we have (after a combined income of gross $195000/yr) I thought that, that would be more than enough to show we could qualify to get into an IP with the limited equity that we have.

Thanks again for your repy

Mick