Hi yamadorikid,
It might be helpful to look at a few alternatives.
Do I cut off the excess trunk now, and let it generate leaves and then layer it when hopefully it regenerates new foliage ?
This is certainly a very good approach. If the tree is available to you for a period of time, this would be a very successful way to achieve what you want. Cut it back and let it take off. Depending on what time of year you get good grow back will determine when you should do the layer. If you get good grow back by the beginning of December and place the layer on then, you should get a successful layer. If not sufficient growth develop the tree and do the layer next year.
If I was doing this layer, I would layer the tree and leave it. After the tree has developed a good root system, I would remove the layer, pot it, and let it develop a good root system. If the tree develops some new growth, after potting the layer, you could slowly reduce the height over time making sure that there is sufficient foliage to keep the tree healthy. I would leave the tree for at least 3-4 months before start the reduction.
This is another idea I mentioned in the previous post.
but the tree would be about 2 meters high after I remove the layer. Would be together hard for me to transport it home.
If you did this. After cutting the layer off the host tree, leave the layer wrapped in the plastic. For further protection wrap the layer in wet cloths to keep it cool. This would allow you to transport the tree laying down. When home, remove the cover off the layer and plant the layer. Make sure you secure the layer very securely with guy rope/ties so that the roots won't get damaged with movement. As the tree develops and produces foliage, slowly reduce the height.
When you put the layer on throw a bucket of Seasol on the host tree. You could also give the tree a good feed of an appropriate fertilizer.
Regards Ray
