Oh yes indeed i know the property.

Must admit used to own half of MM at one stage in the game.

Where are you based ?

CBA will also do it if the rest of the deal is strong.

Couple of mortgage managers.

Aaron just read last months copy of the API magazine.

I gave an interview about how i started out in property investing here in Oz in 1994.

Bit quicker than we me repeating the whole story again in script.

Hi Sweeny

Yes the strategy you describe is exactly what we would recommend to any new investor starting out who hadnt previously purchased a PPOR.

Agree with Steve that a lot of lenders dont like doing an interest only loan on your PPOR but there are still a few that will do.

Your Broker should be able to give you a range of lending options.

Hi Nathan

Firstly welcome to the forum and I hope you enjoy your time with us.

Congratulations on having saved so much it is a rare trait for someone so young.

Now going forward the first question i would ask is does it have to be an IP.

If the area you are looking at is close to you then have you considered buying the property as a PPOR claiming the FHOG and Stamp Duty Concessions (Which depending on which State you are in may not be available 2nd time around) satisfying the qualifying criteria and then moving back home renting the property out and claiming the relevant deductions.

Again depending on the State you are buying in the savings could be considerable and a lot more than 6 months rental income.

Structure the loan correctly and you will be able to have the best of both worlds. 

Secondly you will have one property which you can claim as a PPOR and preserve the CGT status for 6 years subject to not buying a second PPOR.

As far as working out what lvr you should consider this will boil down to a few things. One being serviceability,

There is no point in taking out a 95% lvr on your first place only to find that you can service even with rent a 2nd IP and that you ahev to sit and wait for a few years whilst you save up or your income increases.

Without actual figures and details on yoru expenditure it is difficult to provide further structured information.

Financed a few recently in Melbourne at that sort of size but would need to see the floor plan.

Lender i have is very funny about such things.

Does the unit have a separate kitchen and laundry ?

If so it maybe possible

Yes price has very little do with it but income producing land is not that attractive to the majority of lenders.