“borrow that loan” is not good English either

You can't really borrow of a contract for an apartment off the plan.

I thought you were meaning something like:
A buys the land and A signs a contract with B Pty Ltd to build but with the director and owner of B pty ltd being A. This would probably be treated as owner builder. Doesn't mean you cannot get finance but it will be a bit harder. This is because you are basically building your own house.

If C was the director of B Pty Ltd then it may not be an issue.

What state are the properties in? You would need to at least consider a trust if you are approaching the land tax threshold.

You also need to protect your own interest if your brother were to go bankrupt, die or divorce.

In addition you need to plan things to reduce personal liabiity and assist borrowing power.

Sign both sides of the contract? Builder and client?

You should really go and see a broker. Because if you own a company you will be considered self employed. If your company is contracting to build your house then they will probably see this as owner builder.

Think it logically thru.

If you take th $60k out of the offset what will happen?

A: Your interest on the home loan will increase by about $4,200 per year. This won't be deductible because it relates to non deductible loan expenses.

Q: If you were to pay $60k off the loan and then reborrow it?
A: If the new borrowings were used for investment purposes then you could claim the interest.
Approx $4,200 in extra tax deductions. Approx $1953 saved in tax if on the top tax rate. This is each year too. Imagine how much sooner you could pay off your home loan with this?

Yep, FHOG would require you live in the place at sometime during the first 12 months and stay for at least 6months.

PI Insurance for what? Lawyers pay about $8k plus pa. Mortgage brokers about $800 but it all depends.

Oh, sorry, yes with a SMSF you can restricted and cannot borrow against a property more than once – they can only borrow to acquire a single asset.

1. The legilsation doesn't have a time limit, so basically as long as you can establish that it is your main residence you should qualify.

2. Best not to pay off principle but to put extra in the offset. It should save the same interest (unless u r tempted to spend). If you pay down principle then you will be paying more interest if you need to buy a new house to live in – your funds would be tied up and you would need to borrow more.

4. No, you can borrow against equity in the first to buy the second.

Yes, you are generally right on track, but you could tweat the strategy a bit to improve it. Paying down debt is good – but could lead to tax complications later.