This won’t be welcome under residential lending.
Most lenders will not lend for more than 2 on title. Some will, but if they think you will be running a short term rental business they will not include potential rent.
You will need to consult a broker.

Will you be buying for $200k or $300k or $450k?
better speak to a lawyer too, especially if you are planning on buying for less than market value.

first get permission from the mortgagee – they won’t give it.
Then speak to your conveyancing lawyer about whether a contract is needed, enter contracts and sign transfer and settle.
Duty will be payable on the value transferred.

any change in title will require a release of the mortgage. This means the loan will need to be paid out or a new loan applied for.

Stamp duty will apply on the value transferred, unless there is an exemption. none available for pensioners as far as I know but depending on the circumstances you might be able to argue a trust relationship.

Going off title will effect the pension.

Seek legal advice.

good advice Beas

Owners Corporation Act in VIC http://classic.austlii.edu.au/au/legis/vic/consol_act/oca2006260/

Not enough info, but possibly not as you have been absent for less than 6 years.

Not deductible

Interesting you are after 8 years experience! why not 10?

craig123 wrote:

Should we use that equity towards a deposit for the investment or should we borrow against our PPOR for 20% deposit then another loan against the investment property?

Isn’t this the same thing?

Generally a loan for a main residence purchase will have a lower interest rate for a loan for an investment property purchase. So one strategy is to borrow against the main residence, debt recycling along the way and using these funds for the investment. this way you will get at least part of the investment loan at owner occupied rates, yet still maintain deductibility of interest.

You can also avoid using 2 properties as security for one loan – cross collateralising securities.

It depends. It can be a good investment I think as often good cashflow and prices can be cheap. But without capital gains you could be tying up valuable borrowing capacity too.