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Financing/Buying 1st IP - Advice Please

Discussion in 'Real Estate' started by Amber, 24th Mar, 2010.

  1. Amber

    Amber Member

    Joined:
    6th Oct, 2009
    Posts:
    9
    Location:
    Wollongong, NSW
    Hi All,
    I'd really love any advice/information you can give me on this.

    My partner and I would like to buy our first IP this year but we're a little worried about working out our cash-flow and finding the best finance.

    A little background, we purchased our PPOR last year for $310k with the FHBG, LMI and no deposit. We paid all the expenses and the LMI, as well as the first repayment on settlement day. Since then, we have repaid approx $1200p/m extra into the loan which has us around $14k ahead.

    We'd like to buy a *cheap* IP this year and we're thinking about changing our PPOR loan from 3yr Economizer to a IO with 100% Offset (if the bank allows) as we only plan on living here for another 3-4yrs, then keep it as an another IP.

    My questions are:
    1) Does this sound reasonable/achievable on combined income of approx $80k gross?
    2) Is there a calculation that we can use to work out our cash-flow/budget including rent & tax deductions?
    3) Does anyone know a good Financial Planner/Adviser or Accountant in Wollongong we could talk to for professional advice (and who would be best to discuss this with)?

    Thanks for any info/advice. We really want to do this, but we're unsure how to work out the numbers. :confused:

    Cheers
    Amber