Yes somewhat.

Borrowing 120k as deposit for IP and 120k that will be in an offset account linked to PPOR and to draw on if need be and use in 6-12months on 2nd IP. This is coming from using the equity in our PPOR that is paid off and has zero $ owing

Does this kind of make me pay more essentially for a 240k loan rather than 120k and should use a LOC?

Hmmm why would it be setup this way apart from reducing PPOR interest??

Can i have 2 offset accounts
1. for the PPOR where the deposit of IP will be along with the other portion of equity, so im reducing the P&I from repayments
2. The IP will have its own offset IO loan where rent goes into and expenses for IP only come out
?

Dont like the idea of LOC and what I’ve read with the bank “owning” the funds/properties

Hi All,

I have currently been looking for an investment property and found some apartments in the city (Melb). I too are in the 30% income tax bracket and only have around $50K left on our mortgage (current residence) with my partner (Equity about $60K). The apartment can be bought for just under $300K with the rent basically paying off the loan even with a int rate @ 9%. If I did principal&Interest loan we would need to pay $75 per week. It has a gurantee rent of $480 p/week as its with a serviced apartment company (oaks/Quest) you know the ones, which will be rented out till 2014/2017 with 5X5 and 2.5% increase pa.
Does this sound like a good investment or is it too good to be true? We want to try and boost our portfolio but also wanted to go overseas next year as a little reward for paying off our Primary residence and still cover the apartment investment which seems doable….

Any thoughts would be great for this newcomer….

Thanks