Hi Bbinvest,

Generally, when your loan switches from IO to P&I the lender will give you a standard rate, so make sure you negotiate as hard as you can with your current lender to get the P&I rate as low as possible, might help with increasing your cashflow slightly until you decide what to do with the property…..

You’ve definitely got yourself a cowboy of a builder there! I imagine it will be difficult to get him to vacate the site if he’s already settled in there. I’ve heard of some pretty nasty stuff dodgy builders have done when they have been kicked off a job site, so you need to be careful what action you take. How far off are you with getting the finance approved? Perhaps sit down with the builder and explain your concerns to him so he fully understands where you are coming from.