Whats the best thing to do?

We currently have 1 property where we reside and are looking to buy IPs. A year or so ago, I got the current home loan changed to interest only because we decided to move out of there and into a rental property. But things have changed since then and we have decided to stay in this house for now and possibly for a few years may 5 or 10, depends on few things.
I still kept the loan and interest only and decided to save up money so we can but a IP, but now I am thinking would it be better to pay off loan quickly and use the equity to but IPs?
I keep on feeling because our mortgage payment is smaller may be we are not saving enough and increasing the mortgage repayment will give a lil extra push and things might move quickly.
Any thoughts and suggestions would help.

 

Leave as interest only. That way you can use that money for buying investment properties and you can still access the equity in your home. You should talk to your mortgage broker and they can talk to you about how to use any equity from capital growth in your home.

Leaving it as interest only provides flexibility.

 

Can you get an offset account attached to the loan? That way you can pay the extra money into that to be befit from lower interest while a PPOR, but "keep" the loan for when or if it becomes an IP.
Marg

 

I see nothing wrong with having the loan on P&I but just making the base repayment & the rest in an offset.

This way you have cash when you need it, but also smaller loan commitment over time.

Everyone just says do the IO thing, but unless you have decent income (read a lot more than average) you need to pay loans down, the aim has to be to gain income from investments, not be negative forever. The only other time is when you will be acquiring as much as possible.