Thanks @xdrew, that was the same thoughts I have 2 years ago (with less income and without the 2 kids). I thought this year work out our finances better, and work towards our first investment property!

@TheFinanceShop, yes, definitely change to IO loan when converted to IP – been following that thread as well. The bank approved $435k, so thats…[Read more]

@TheFinanceShop

Thanks for the response.

When you say heavily negatively geared, you mean the rental payments do not cover the mortgage right?

It will be owner occupied for the first year (it has to be since we took the first homebuyers grant) but then we may rent it out and move out. There is the opportunity to convert it into a 3 bedroom…[Read more]

Thanks all, some great info here.

@TheFinanceShop: Im calculating the equity:

Property 1 – Worth ~$300k, owe $260k on it = $40k
Property 2 – Worth about $320k, owe $300k on it. = $20k
= $60k equity correct?

From what i have read banks will let me use 90% of that? So is that a straight $54k I can knock off a required deposit for the new…[Read more]