Hi there,
Myself and two of my best friends want to get into property investing ASAP. We have found a place which we think is going to be a perfect start for us. The place is in Townsville, but none of us live in Townsville and will therefore not be able to make good use of the first home owners grant (we are all eligable for the grant individually).
We were thinking of buying the property under a trust, however we are not sure whether we lose our grants or whether we can use them down the track ??
Also on the matter, if it is in a trust do we still get to claim the same proportion of tax deductions against our personnal income as if it was bought in our name? (Not worried about effect on CGT as it would be a long term buy and hold)
Any help would be appreciated
If you buy an investment property and never live in it yourselves then you will all still keep your FHOG entitlements.
Check it out yourself.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I disagree. The first home owners grant is only available to someone who hasn’t owned a property before, once you have owned a property you aren’t eligible:
From http://www.firsthome.gov.au/
“Neither the applicant nor their spouse (or de facto) must have owned and occupied a home after 1 July 2000.
Neither the applicant nor their spouse (or de facto) must have claimed this grant previously. “Chris
Plus if you use the grant you don’t need to live in the property until one year has lapsed after the settlement date.
So you need to move in and technically live their for six months starting within that 365 days. So can move in on the 365th day!
But their is exceptions to these rules and the year can be extended and so can the six months that you are required to live in the property can be shortened if you provide reasonable reasons why you can’t do it.
Just letting you know as food for thought as you weigh up the options.
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Learn about a current 91 Unit development near Sydney International Airport and there all Positive Cash Flow, 43M resale values, 25/06/2006.Originally posted by chrisconuts:I disagree. The first home owners grant is only available to someone who hasn’t owned a property before, once you have owned a property you aren’t eligible:
From http://www.firsthome.gov.au/
“Neither the applicant nor their spouse (or de facto) must have owned and occupied a home after 1 July 2000.
Neither the applicant nor their spouse (or de facto) must have claimed this grant previously. “Chris
Mortgage Hunter knows his stuf.
What your describing is right for a “Home” that’s not an investment property!
Variety of free comprehensive property analysis calculators and feasability programs.
Developers Renovators Spreadsheets Positive Cashflow Home Owners
Lending Money Joint Ventures Five Star Checklist Subscription
Learn about a current 91 Unit development near Sydney International Airport and there all Positive Cash Flow, 43M resale values, 25/06/2006.The truth is in the detail and your reply reconfirmed that mortgage hunter is correct:
Neither the applicant nor their spouse (or de facto) must have owned and occupied a home after 1 July 2000.
Neither the applicant nor their spouse (or de facto) must have claimed this grant previouslyWhich means you can own 1000 investment properties and still be eligible for the grant because you never occupied that investment property.
Mortgage Hunter is correct.
Joshua McEwen
Finance Broker – WAhttp://www.prestigeloans.com.au
Brokers Lic 1297
Licensee Brett ChristieOriginally posted by chrisconuts:I disagree. The first home owners grant is only available to someone who hasn’t owned a property before, once you have owned a property you aren’t eligible:
From http://www.firsthome.gov.au/
“Neither the applicant nor their spouse (or de facto) must have owned and occupied a home after 1 July 2000.
Neither the applicant nor their spouse (or de facto) must have claimed this grant previously. “Chris
Chris,
Your quote is quite correct and before Jun 2000 any property owned would disallow the FHOG.
However if you study your quote you will read that you must own AND occupy a property to lose the FHOG. Thats why I stressed that Ben (the chap asking the question) can buy an IP but not live in it.
But the Stamp Duty exemption is a whole different kettle of fish and an Ip will disqualify you from it. I suggested to him this morning , when he called, that he may well lose this and it is equally as valuable as the FHOG and often more so.
Keep on watching my posts and picking me up – at some point I will be wrong!
Thanks
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I stand corrected. Thanks for pointing that out!
Chris
The FHO grant links for each state are on my website if you want to go and check out the details.
BTW I have a property in Kirwan (Townsville) and I have had great captial growth there. More strong growth is predicted for that area. Rates are one of the most expensive in Australia but the Council is cashed up and starting to spend on massive amounts of infrastructure.
I have seen some good deals around the Condon area. You should be able to find some information on Townsville in one of the reports on my website ‘reports’ page..
Regards
Todd Burns
http://www.freepropertyhelp.com.au
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