Ok, so Here's my situation My income = 65k Wife = 37k Also, tell me what you think about this scenario here I have been thinking about a way to draw down on the equity I have in both my Principal Place of Residence and My Investment property to invest in either shares or property or both. Draw down on equity from my Principal Place of residence and put it into a Line of Credit loan, capping the PPOR loan at 260k use, say 80% of this LOC to invest in a margin loan for shares geared at say 60% retain the 20% portion of the LOC loan undrawn and sitting there to meet any shortfalls in servicing the new loans e.g. I have 140k equity in the home (purchase price 400k less loan outstanding of 260k) I put it all into a LOC and use 112k to invest in a margin loan for shares at 60% gearing so I would control shares worth 112k from line of credit plus 74k loaned through margin loan (nearly 200k) I don’t know what the return on 200k in good blue chip shares would be but would probably be better than what I am doing now, which is nothing. The other part of the plan, which would depend on whether I could afford the interest repayments, would be to 1. draw down on the equity in my Investment Property (approximate value say 370k less loan outstanding of 175k = 195k 2. put it into another LOC (or maybe the same one as above depending on what is more beneficial) 3. use 80% (156k) plus another say 100k loan to buy a 2 bedroom unit as a second rental property. I would be able to claim all the interest repayments on every loan except my Principal Place of Residence as a tax deduction as well as depreciation and income from the share portfolio and rental properties. (wouldn’t I?) I haven’t done any hard numbers yet, I might have to come and see you to see what you think Does this plan sound too risky? I want to aquire another IP and perhaps invest in a manged fund like Navra in order to improve cash flow. I constantly asking myself the same question how to generate cashflow to service these loans for extra IP's? I hear stories of people having 6 or 7 IP's and I can't see how I can get much past 2 let alone another 5?