Thanks Steve, a quick call to the local council revealed that it is an ''unidentifed easement" most likely for access to storm water pipes as these just touch the southeastern corner of the block. So will need an Engineers Report and a Survey Plan to ID who owns the easement…. most likely local council. Councils preferred access to the easement is from a lane way at the back of the block. Which in the event of a subdivision I would have to develop into a bitumen road to the property boundary to access the subdivided block plus pay contributions tfor curbbing and channelling.

Is it usual practice for the developer to pay for the whole of the road upgrade or just significant contributions to its upgrade?
Length would be approx 50m of bitumen road?

Appreciate any thoughts.

Thanks

Thanks Scott No Mates, The space is zoned commercial so would that reduce some of that risk? Tenants in the 6 unit complex are long term with good solid history. Floor space is small at 58m2. There is a small bond in place $1600. Lease is 3 x 3 with renewable option but outgoings are not included.

Does this information raise any further eyebrows and potential questions to consider??

Thanks mate

Thanks Terry and Tammy, I am a little confused. But would the rent that you are paying into the Trust be tax deductible? If so to whom or to what entity would this deduction apply? The trust would run at a loss I guess as loan and rental expenses would be greater that market rent paid by me.

Thanks again

Thanks for contributing. I have certainly gotten something out of your comments and will take it on board.

Cheers and happy investing

Thanks again Richard, PPOR currently with ANZ LOC. Would you suggest talking with them to discuss as would be 1st IP. 
I am keen on a debt reduction strategy asap. I think interest rate MB quoted for Mac Bank LOC was 7.68% in early Dec 2007 but extra costs of doing transactions with Mac bank would increase the costs of doing business. Yes?

Cheers

Very Interesting comments and thank you for your posts. The reason why I posted this question was because my mortgage broker suggested this product as a way of wealth building and debt reduction. I will try to explain below:
 
LOC 1 on PPOR
LOC 2 using equity from PPOR to fund IP purchases IO.

Broker suggested that via Neg Gearing a tax rebate would then be used to help pay down the PPOR over time, therefore increasing your equity in PPOR plus increase overall net worth via additional IP purchases as able.

Over time global limit increase due to growing portfolio CMV.

Does this make sense?? Is there a better way to build net worth and reduce PPOR debt?

Richard and Trent you suggested that there are alternatives to macquarie?? Any examples ??

Thanks again and look forward to your views.