if i plan on purschasing a block of land and then building a ppor on it. land currently valued at half proposed building costs. completion in 6 months.
what would be my best options?
purschase the land outright then borrow to build .
Since borrowing costs for PPOR are not tax deductible you should keep the size of the loan as small as possible. On the other hand, if you move out later and keep it as a rental you may wish you had the largest loan possible because suddenly interest on the loan becomes tax deductible. Have you got a crystal ball?
To cover both options you could get a loan with a 100% offset account attached. The money in the offset account is, er, offset against the outstanding loan amount when interest is calculated, thus reducing your interest cost when PPOR, but is readily available and can be used elsewhere if it ever became an IP.