What Do I do now?

Hi guys,

I would be keen for any views on my situation. 

Salary approx $200k per year.

Have a PPOR (bought 2 years ago) and an IP in Sydney.

PPOR purchased at $510k. Not sure what current value is, but on the basis of comparable recent sales somewhere around $530K. 

I borrowed about $470K.  Paying P&I fortnightly. 2 years later I now owe about $435k.  100% variable. With interest rate decreases now, I have not reduced my repayments and am therefore am paying more than I need to – happy to continue with that to get the P down faster.

I have an offset account.

Have had an IP for 12 months. Borrowed just under $300k.  Took it as interest only for first 12 months.  Am contemplating going to P&I now. But yet to decide. Repayments around $1900 per month. Rental return $320 per week.

I have developed some more savings which I am in two minds about do I:

– Look to buy another IP with some good buys out there and use the savings as a part deposit.
– or do I hold steady on a second IP, use available cash to get the P down on my PPOR and look at a 2nd IP some time down the track.

Views?