Replying to all above (will try to answer all questions) – thanks to you all for reading this and coming up with suggestions.
Firstly – Terryw. Could get Melbourne due to serviceability. Have spoken to 1 bank and 2 brokers – bank says enough equity and not enough serviceability, 1 broker says not enough equity and enough serviceability and the 2nd broker says not enough serviceability, will hopefully find the equity. Re bridging finance – the bank will give us the money only on a signed contract for Sydney. The value – Melbourne is less than what we paid for it; Sydney is around the same we paid for.
Anubis – Don’t own Melbourne yet so not an option; Sydney is a 2 bedroom unit and as we are 2 adults and 3 children under 10 is not really possible.
FFComm – changing the apartment – it is brand new so there is nothing to really makeover.
foundation – have been to solicitor, property valuer (but not a financial planner). Walking away from Melbourne is an option BUT as we only paid a deposit bond, would still have to come up with the deposit, and the contract says the developer can persue us for the difference; our solicitor in Melbourne will try to change that if we get really desperate.
brahms – if we default on the contract we have to pay out the deposit (which we think we can arrange) or the deposit bond company will sue us for the deposit and we will get a bad credit rating. We did not have to get finance approved to get the deposit bond – don’t know why.
Thanks again