did you live in it because you may be able to still claim the FHOG which would make a world of difference. 

Easy answer is to grab a good banker or broker and determine what is required and possible today if not 'tomorrow'. At a very basic level, the lender looks at 2 things – they are deposit and servicing. There are a whole bunch of other variables. Now it sounds like those variables may not be an issue nor is the servicing however the deposit may be an issue. 

Which state are you in and is this your first home purchase?

1. You need to under what equity you have to work with – order a few upfront vals to determine this. Most lenders offer this and best of all they are free and quick

2. Ensure that you choose a lender that has a policy that can handle the development part – e.g don't go with an ANZ or ING

3. Be careful you do not increase your current loan if the purpose is for another loan – instead set up a separate loan facility.

4. Ensure that all loans are on IO to assist with cashflow particularly when you hit subdivision/development stage. 

Where are you located?

go to the newcastle or local council website and download their DA Guide – plenty of useful information around the requirements for dual occ, multi dwelling, etc.

This is excellent thanks.

are you talking about putting the funds into the actual loan instead of MISA Offset?

You can do it but you would need the hydraulic engineer to sign off on it.  Its not hard to do. 

Westpac has got redraw on fixed loans too

Mortgage Broker in Adelaide – try Corey http://www.xlfinancial.com.au

Sorry to clarify on the above question – I meant upfront val with other lenders.