Definitely get a building and pest inspection done and don't use the one that the agent recommends. Use a completely independent one. 

Arguably I think you should buy properties unseen when you already have a few under your belt – otherwise pay a few hundred and inspect the property.

Why are you choosing these areas and these types of properties? Also whats your budget?

Also use the increase in funds (albeit not huge amount) so negotiate a better rate.

Rightio – then that is a different story. You may be able to keep both. The other thing to consider in this scenario is CGT. Again looks of different elements to consider along side doing the numbers so speak to an accountant and broker and set up a clear strategy. 

Ideally, you want to have a linked offset and save all your funds in there instead of paying the mortgage down. Also sounds like you are cross securitised so you may want to fix that up. The flexi loans are @ 5.12% so you should definitely get your banker or broker to do the funds as there are plenty of lenders that will give you less than 5% on variable and rebates for refinances.

Why on earth are you still with AHL?

The one big thing that sticks out for me is CGT. You need to plan for this more than anything else. Please see your accountant about this point. 

It will also make sense to talk to your banker or broker about correctly structuring your finance to meet your tax objectives. You need to think about what you plan to do with the property in a few years time as well.

Talk to a solicitor and accountant about asset protection, CGT, income distribution and then tackle the JV. Plenty of people out there that are willing to do JV but you need to understand the taxation, legal and finance side of things first.

By splitting a loan is a type of strategy for people that want to manage their risk (by fixing a portion of the loan) and take advantage of the benefits of an offset (by keeping a portion variable).  

Now some lenders do offer an offset on fixed loans but ultimately you are paying a premium on the rate. I have used this strategy within my own portfolio. 

Re the rates – they are not very competitive rates from ME Bank. You can definitely do much better – e.g AMP is offering 4.69% on 2 year fixed rates and many others are both competitive and offering cashbacks for refinances. Choose wisely before locking in a rate and lender.

1. Make sure that you create a separate loan account so that you do not contamanate the tax deductible interest for that portion of the loan.

2. Make sure you get a decent Granny Flat builder – there are lots of builders doing GF's now days in Sydney and some are expensive and some do a really bad job.

3. Try and ascertain the DA via a private certifier – a bit expensive upfront but will save you time and money in the longer run

4. Valuation is going to a big variable and unfortunately Westpac doesn't allow for upfront vals on construction loans. Having said that you have plenty of equity so you should still fall under the 80% LVR mark. Other than rate I cannot see a obvious reason for you to need to move.

Which part of Syd is the GF?