Best option? Add more cash to PPOR or buy another IP?

[JamesMarshall]

Hi,

I currently live at home, own 2 ips and have $300,000 in cash.

I want to buy my first PPOR, but would also like to invest further in ips.
Is the best option to put all the cash in to PPOR (as it is non tax deductible debt) and then look to refinance in the future, or to simply put down the minimal deposit on PPOR and look to use the extra cash now for further ip purchases?

The plan would probably be to live the in PPOR for approx 5 years, then upgrade and convert PPOR into an ip.

Thanks

 

[Rolf Latham]

Hi JM

Well done !

Much depends on your deemed and actual capacity, risk profile and importantly what you will do with that PPOR in the future.

There isnt enough detail here to provide any definitive answer, but placing a 20 % deposit on the PPOR, takinga FLEXIBLE IO product, and placing the balance into the offset will allow you to maximise your options in the future.

Speak with a good independent broker and see what optiosn are out there for you, the right stucture can really accelarate things for you .

ta
rolf