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I think the assumption is you only have a certain amount of cashflow, so ifyou put it on the P&I you can't afford to buy/hold another IP, or can only afford X many. Setting the PPOR to IO frees up the cashflow for an additional IP, or 2!

Thanks MIW, yes I completely agree with this theory during the asset building phase and have doing it myself for the last few years. (It of course relies on the banks letting you set your PPOR loan to IO and giving you a loan for another IP) I was just curious as to whether they paid the PPOR...

Are they advocating paying off your PPOR but not IP's? OR not paying off any of your debt?