Draw on equity now for first IP or wait until “value adding” is finished and have savings?

Hi Everyone,

Just wondering if I can get some advice on what path would be the best to take.

My ultimate goal would be to eventually buy the "renovators delight" properties, renovate and sell, or renovate and rent, either way and build up a portfolio that way, and eventually have that as my full time job.

So, a bit of background info, my husband and I purchased a house and land package and moved in, in May 2009. The package was turn key, but we decided against the landscaping because we could do that ourselves for better and cheaper. Life got in the way and we only started the landscaping 4 months ago and expect to be finished by the end of this year as we're only able to work on the house on the weekends.

We owe $239,000 (P&I loan) on the house and similar houses have been selling for high $200,00's to low $300,000 in our  estate and area. Currently what we're doing is paying an extra $225 into the mortgage account each week and when the extra repayments reach $2000 (min redraw amount) we redraw it and do something to the house (ie we've just finished building a massive deck, and now started out the front – nature stip, portico etc) but we still have a fair way to go till we're finished – we need to build a retaining wall down the side, level it out, lay down gravel etc.

So that brings me to my question….would we be better off waiting until we've finished our house, save up enough for a deposit, use the equity if we need to, and purchase our first IP or would we be better off doing it now, draw on the little equity that we have (or would the bank see an "unfinished" house as a liability?) to pay for legals and taxes find a CF+ place and keep on working on our PPOR untill it's done and then go from there?

Thanks in advance!