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Thanks for all the posts, I am much more enlightened now! After reading this and other threads, I am leaning towards IO. Offset accounts also sound pretty fantastic, I like the idea of having more control of your cash. In response to josko: yes, I would like to end up with a portfolio of...

Firstly, I'm on a fairly low income (low 30000s), and let's just assume this won't change for a while.:eek: I get the idea that most people say IO loans are the way to go for an investment property. But am I correct in thinking the main advantage to interest only is that the interest payments...