All this forum talk of strategy, goals, putting pen to paper, etc., has inspired me to want to do the same. Basically, I am currently renting in Sydney with my fiancé, and we have saved 180k for a deposit. Our gross household income is on the lower side (120k pa) as I am fulltime studying and will be until end of 2019. After that, my income will dramatically increase. Over the past 8 months, I have been watching the Sydney market, looking for an opportunity to buy in, with the following parameters: 1. Approximately 70 minutes door-to-door public transport commute for my fiancé (works in Pyrmont). 2. The weekly outgoings to roughly equate to our current outgoings of $400 / week. We are both quite realistic with our expectations on what we can afford – I believe we will have the serviceability for a 600k loan (and if that’s an issue, I’ll have the loan guaranteed by my folks). For a while I was looking at 2/2/1 apartments, with the intention to sublet a room in order to meet parameter 2, but instead I have moved over to looking for houses with either granny flat setups, or potential to derive income from. I don’t know if this is the wrong view to express, but we both would rather our money going towards paying mortgage interest, and not rent, and if we can find a place that roughly equals the outgoings of our current situation, then why not? (I mean, on 180k in a saving account you’re looking at ~5k gross pa, but peace of mind in one’s own place is worth that to me). Recently I came across a house that I believe meets my parameters. The listing price is around 750k – it is quite hard to price as the block is considerable smaller to all the other sold residences in the area. It is approx. 400 sqm, whereas others in the area that I have seen sold are in the 550-1000 sqm. On the block is a house with two separate entries divided by a common wall with 2 bedrooms in one side, and 3 bedrooms in the other (have their own bathroom and kitchens). The 2 bedder rents for 300 pw, the 3 bedder rents for 350 pw. So my idea is, if I purchase this place and live in the 2 bedder side, assuming 5% IR, Ill be looking at annual outgoings of around: Interest repayments: 30 000 Internet: 1000 Electricity: 2000 Rates and water: 2000 Total: 35 000, or 673/week Renting the 3 bedder out to get 350 x 48 weeks = 16 800 New total: 350pw outgoings (very rough figures here) Now, with this, I haven’t considered tax for income from renting out the 3 bedder. Just looking for advice on what to do, can I set up the loan to be two split loans, one for the 2 bedder and one for the 3 bedder, pumping all funds into the offset of the loan attached to the part that we are living in? Would that make the interest for the loan attached to the section of the place we rent out deductible and therefore allow for better tax benefits? The idea is that over the next 3 years, we pump the offset with our savings (IO loan), we also have 250-300k coming from the sale of a deceased relative’s house. If my career takes me elsewhere, we can pull out the entire offset and dump that into the next PPOR purchase, or use the amassed funds for IP purchases. Would it be best to go for a 90% LVR and incur LMI, if this is the direction I want to go in? Or is 80% LVR and no LMI the right play? Ideally, the property would be a long-term hold (i'm 26), and hopefully in the next 3-5 years be cf neutral or +. I also have the opportunity to dramatically reduce renovation costs, building costs etc as my dad is a retired builder, and has quite a few contacts in the industry - aiming for a house feels like I could take advantage of this more than an apartment. So I'm not sure what I’m looking for from people, but I've tried to just put it all out (apologies for the long-windedness), and hope that people can critique, offer advice, etc., and answer some of the questions I've asked. I appreciate any and all contributions! Cheers.