Sounds like you need to step back, pencil the options/scenarios and see which numbers stack up.

If you are going to convert the property you are building into an IP consider not paying down the principle against the property. Instead have a linked offset and accumulate your funds there (assuming you are not tempted into tapping into the funds). 

You can't claim the redraw amount as you will be in trouble if the ATO finds out. Why on earth are you with bankwest? 

BTW – I think its good the plan you have is good and its also good that the loans are IO. Make sure you have a linked offset when you do the PPOR purchase and have the funds sitting there since that loan is not tax deductible.

Regards

Shahin

Hey congrats you finally got there – didn't you have some issues with the builder if im not mistaken?

On my way of finishing one of my developments after 2 long years and now heading towards a few sites in Newcastle way to develop. It's becoming harder and harder to find development sites due to competition from builders and the increase in knowledge of every day investors. 

I have a couple of contacts for my properties – what is the size of renovation or what are you renovating?

CBA's 4 and 5 year rates are very competitive and only ING's 5 year rate is better than CBA by 10 basis points however I don't think its worth the switch.

If you are planning to draw upon equity then you do need to understand the risk of fixing with CBA, then ordering a valuation and the valuation potentially coming back poor. This will restrict you from moving to another lender that potentially has a higher valuation.

You have a healthy budget and a good deposit amount. This means you have options. Map out a few scenarios and look at the numbers – see which one adds up. For example, do you buy an established property out west or semi regional with scope to create dual income whilst renting out close to the city? How do these numbers look against an OTP? 

What you need to be careful is that you do not purchase a property that doesn't give you access to equity due to poor CG in case you want to upgrade from a 85sqm unit with killer strata in 5 years time?

If it makes you feel better my wife and I were in a similar position many years ago and we were considering an OTP in St Leonards – we ended up purchasing a house in Gordon and haven't looked back. 

Whats your budget and deposit amount? 

what do you need to know exactly?

I think it will hit 90 sooner than later? Keen to hear everyone else thoughts?