I hadn't considered the implications of a second mortgage in full - agreed, could pose a problem
I like the idea of the refinance with a few $k to go - that may also provide some flexibility with the ultimate term of the warrant and may be a valid strategy
Re self finance - yes, certainly the member could effectively finance the warrant using other assets as security (this is a cheaper way to set up a warrant too as it reduces the bank cost component) - however, the drawback is of course that you're not using the target property as leverage
As an aside, I find that the risk of double stamp duty in SA certainly does nothing to foster investment or in fact provide additional motivation to self fund one's retirement (this was clearly evident in FY07)
Something may pop up on this at the SPAA conference next week in Adelaide
