Hi Guys, I am looking at moving on to buying my second property and have a couple of questions on the best way to do this. Current Situation: Bought a house with FHOG in March 2008 Purchase Price: 315k Current Loan: 235k I work mainly in Melbourne CBD, however my house is in Berwick (this is where I grew up) and I am looking at getting an apartment closer to the city. I am currently living in the house in Berwick however I will be moving back with parents in 2 months. Ideally I would like to rent both house and apartment (when purchased) out for 6-12month period to try and save as much as possible. Quesitons 1. Should I release the equity in my first house to buy the second? Or would it be better to save for the deposit separately? I have no access to an offset account with ING. 2. What is the best loan structure for purchasing the 2nd IP, one of which will eventually be an PPR? Currently with ING Direct for the loan above, but this has no offset account which is annoying. 3. When converting my current place to IP given that I have no redrawn any funds will all interest on the loan account be tax deductable? 4. Any other advice? Many Thanks.