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Yes it will make your repayments higher, however you will then offset the higher repayments with rent you will recieve from the property. It can be further offset with negative gearing if applicable. Chat to your accountant about this. I dont want to tout for business on this site, as it is...

I am a mortgage broker who works with a builder in the area, so my answer isn't exactly unbiased. However,I would suggest you buy the land and construct now. If your serviceability with one bank isnt enough, there is usually a way to do it with another. There are a couple of banks who dont...