Looking at renting and building
 

Hey guys we are looking at building our second house and renting out our current house. We have someone we are seeing to get all the info but I'm looking for a second and maybe even third opinion to see what our options are, bullshit aside.
Also any advice from people currently doing this would be greatly appreciated.

Are you planning to sub divide & build on your current block,while the existing house is being rented out? or are you going to buy & build on a new block?

Feel free to pm me if you'd like to set up a consult (from a compliance and tax planning perspective).

Out of curiosity what area of expertise is the person you're seeing about this?

It will be a seperate block and house. He is a builder, he has been very helpful so far and full of knowledge but seeing as he obviously wants to sell us a house we want to get opinions from all angles. We also have a mortgage broker/accountant type person to go through whether it is viable/affordable/worth doing or not.
I want to get as much information and opinions as possible before rushing into anything.

Sounds like you're already taking the right steps here mate!

Edit: Forgot to ask if you've had the cross collateralization conversation yet? I've taken on psychologist activities lately trying to clear minds of this.

No I havnt, what is it?

[QUOTE=doadrift;482708]No I havnt, what is it?[/QUOTE]

[URL="http://www.mort.com.au/FAQRetrieve.aspx?ID=28537"]Cross Colateralisation[/URL]

From that weblink you can see why it should be avoided and why I loath fly-by-night financial advisors/brokers.
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^^Not to be considered as financial advice^^[/I][/B]

Cheers mate, so it's possible to change that when signing the contracts?

No worries mate, my limited understanding is its how they structure the security of the loan.

Just make sure you read the loan agreement over till you're very comfortable with it.

You can always refinance, but this should only be for a better rate.

Cheers,