Baby and investing

Hi,  not a lot of info to go on here.  You don't say whether your paying off your PPOR and if you have any equity in it or the IP.

My first suggestion would be that you look at refinancing your loans to 80% and put the money in an offset account.  This can then be drawn on to pay towards the holding costs of the IP.  Prices are expected to improve in Qld in the second half of 2010.

Growth on a property at say 10% would almost certainly guarantee that you would make money on holding the property even if you have to use some of this buffer you have created.  This is done all the time by experienced multiple property owners.  No one has this sort of cash lying around to fund multiple properties from salaries.

This may feel unconfortable for you at first but using equity to service debt and purchase additional properties is all par for the course and learning how to use money wisely like this will keep you making money rather than selling and starting over again.

Hope this helps

Start squirrelling away all of the +1's income (& some of yours) now. Cut out all of your 'extras' and get used to the lifestyle with less cash so that the adjustment is not a shock when the kid arrives. Get used to living off one income & make sure that you can make ends meet, especially if she has to finish work earlier than expected and remain off for longer. Put the extra money into an offset account (against the PPOR or pay down your ppor).

Hi Ninh1000

Thanks for the additional info on your situation.  Investing is scary and serious stuff.  I think a lot of people get carried away at first with the capital gains that can be made but fail to work through the ongoing costs and if's and but's when something comes out of the blue.  It's always better to have a long term plan and a good buffer.  Buffer being money put aside or hopefully sufficient equity to enable you to refinance.  To do this it's best to do this in advance  (when equity becomes available) so that you are always a step ahead. 

Looking at your situation you have $800k in assets.  (Bank valuation could come in at less.)
You don't say how much your current loans are (i'm assuming those figures mentioned are purchase prices)
If you take a normal bank loan of 80% LVR that means you have potential borrowings totalling $640k
Minus whatever mortages you already have gives you the total new finance available.  IF your wife only plans on being off work for a year then you need to cover your costs including mortgages expences etc for this time and a buffer of $50,000 for example may do this.  IF it is longer than more is required…..up to you to do the figures but selling right now might just cost you money after CGT and selling costs.  Have a think about it and talk with some more people……it's quite natural that all this debt scares you.  It's only once you do this a few times and get knowledgeable and gain more equity you will feel better able to handle it all.  It is a long term thing……