Hi
I am looking at buying my first property. The thing is 2 of my friends and I are looking at buying properties together.
If we buy the first property together we know we will get the FHOG for the first property but beleive we will be unable to get the FHOG for the 2nd and 3rd properties. The only way we can think of getting 3 FHOG's is to purchase the first 3 properties in seperate names – However we would prefer no do this if possible as this has great potential to cause problems.
Does anybody have any ides on how we can get 3 FHOG's?
Thanks and Regards
Matt
Assuming all parties are not related i.e Spouse / Defacto the only way is to purchase 3 separate properties which you each respectively reside in.
There is no other way.
Richard Taylor | Australia's leading private lender
You only have to have the property as your place of residence (ppor) for 6 months to satisfy for FHOG..(make sure the electricity bills and gas bills are in your name – keep these.
You could buy the first property in your name now, live in it for 6 months and have your other two friends rent a room (or pay board) to you. You wouldn't have any deductions against your income for this time.
6 months later you could all move out and then turn this house into a normal rental with all the associated deductions and negative gearing benefits.
At this point , your next friend could buy a house and make it his ppor, then you return the favour by renting from him for 6 months.
6 months later again you could all move out and then turn his property into an investment property.
Your third friend could then buy a house and make it his PPOR, and once again you return the favour by renting from him for 6 months,
I believe the FHOG is payable from the time the contract of sale is signed(check this one!!). So in theory you could all sign contracts in the next few months and..
simply have the first house settle soon,
the second house could settle on 6 month terms
the third house could settle in 12 months terms (you would probably need to offer a large deposit to do this)
-I think this is perfectly legal and is a great way for young people to get into the housing market, and satisfies the governments need to stimulate the economy, especially if you build new houses or buy from a developer..
– May hinge on a bit of a gentlemans agreement from all three to stick it out til the end.
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plan B – buy three separate houses now and each of you live in each one separately. Then move in other mates to each spare bedroom.
****************************Trust me, you are much better off having one complete house with only your name on it, rather than three houses with two partners.
– try and get three people to agree on every tiny little thing- oh my head hurts thinking about this.
– It is much easier to get bank finance, as you are responsible for the complete total of all three loans and probably wouldn't get serviceability approval unless all three of you have very high incomes.
– you personally only have to go through the pain of taking out one mortgage. this process drains the life out of you.
– if you get pissed off in a few months because one mate roots your girlfriend, you can simply move on with your life by moving out….. and find someone else for the room.
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The only time I would recommend bringing partners into a deal is if you absolutely have no other option and they bring something that you don't …. ie: they have equity and you don't.
Even so, it needs very definate partnership agreements drawn up and you want to have a serious look at the personality of the other person. Pretty much assume they will get spiteful and take you to court to rip you off. Then think again if you want to do a deal with this person.
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