Hi all Looking for your thoughts on IO vs owning an IP. I have read a few threads on the forum and it seems many are against the idea of owning an IP, though I must say I finding it hard figure out whether it does or doesn't suit my financial position and I have no idea where to start running numbers against scenarios, I have failed to find a comprehensive online resource to do this. And it might be time to do a tax strategy session with my account.... I currently have an IO mortgage on one property (3 years since I bought), my offset helps keep this property positively geared by a small amount each month - but I feel like I need to wait 20 years to see if it's been a good investment and reap the capital gains (it has gone up a wee bit since buying)...so in a way I feel like it's been a bit risky, and is a long term strategy. I am looking at a second property, buying outright (no mortgage) in a small town that has a rental yield of 7%. The idea of having an asset paid off we can use for equity for a PPOR in Sydney, and income each week (albeit taxable) straight away sounds really good. Though I'm wondering, other than paying tax on the full income is there any other downfall? (Its not a mining town, more tourism and farming so I'm confident the property will at least hold in price and appreciate over time). Interested to her your thoughts and experiences.