Buy an IP now with a view to make it PPOR

Hi

We are working on our property investment plan and looking for ways to ensure we invest wisely. We are new to property investing but we have our 1st IP so far (and been researching and asking questions here in this great forum space for only a few months so far and received some great replies… thanks).

I appreciate this might sound crazy to some, but our priority is to find a property in the location location location we want to settle in (work commitments stop us from currently living in our ideal location) rent it out for now to help pay off the mortgage, move in 6 yrs time…

We want to pay off the mortgage to ensure we can keep a roof over our head, as we plan to leave the work force and look at other options for creating our income (maybe even just work part time).

Therefore, with our 2nd IP we want to purchase with a view to it being rented out now and then we make it our PPOR after 6 yrs

We are in a good position financially that will allow us to borrow 95% and then within the next 5 yrs pay the loan out for the principal amount and have no mortgage on our PPOR.

We are wandering, do we start paying off the principal on the 2nd IP from day 1 (so take a P&I loan not an IO loan) or do we put all our extra funds each week/month into off-set account/s against IPs for 5 yrs, using some for more IPs (2 probably) and then once we have the principal amount fro the 2nd IP (intended PPOR), pay out principal for the property in one hit? … and be mortgage free (with the view that other IPs are mortgaged at IO payments and not negative geared).

I suppose a lot depends on the conditions of the mortgage as set by/agreed with the bank/lender (eg they may not allow us to pay off at $2000 a week (eg $1500 more than the required weekly P&I repayment) or even allow us to make lump sum payments of more than $10k as a once off lump sum… there is so much to consider.

Any advice/ideas/experiences?

Thank you in advance for your replies and consideration of this post.

Dragonflyz