All Topics / Help Needed! / Help Please – I Have 1 IP. Should I buy unit in Richmond to live in? or rent, and buy 2nd IP in Suburbs?

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  • Profile photo of MonasMonas
    Member
    @monas
    Join Date: 2009
    Post Count: 2
    June 4, 2009 - 11:36 am

    Hello All,

    I'm 24 and have an IP that pretty much pays for itself.
    I have a decent deposit and am ready to make another property purchase.

    I want to move closer to the Melbourne CBD – (Richmond area etc.) to be closer to work and enjoy the convenience whilst I am still young.

    My question is, should I buy a very small – 1 bedroom most likely, and old unit in Richmond to live in? Or should I rent in Richmond, and purchase a 2nd IP in the suburbs which will be a 2-3 bedroom place with a backyard?

    Any suggestions and opinions would be greatly appreciated.

    Thank You!

    Profile photo of propertunitypropertunity
    Participant
    @propertunity
    Join Date: 2008
    Post Count: 136
    June 5, 2009 - 11:45 am

    If you buy a PPOR 1 brm unit in Richmond – will you be elligible for the FHOG/B?

    Profile photo of MonasMonas
    Member
    @monas
    Join Date: 2009
    Post Count: 2
    June 5, 2009 - 3:19 pm

    Hi,

    Sorry I should have stated, yes I will be eligible for the FHOG/B if i buy the unit in Richmond.

    Thanks

    Profile photo of propertunitypropertunity
    Participant
    @propertunity
    Join Date: 2008
    Post Count: 136
    June 5, 2009 - 10:17 pm
    Monas wrote:
    yes I will be eligible for the FHOG/B if i buy the unit in Richmond.Thanks

    Monas, In that case I would be taking the free FHOG/B money  from the Feds + the stamp duty relief from the Vic Govt + their extras too $3K (I think) and buy yourself a PPOR unit in Richmond.

    You only need to stay there 6 months to qualify for the FHOG/B. If you like it – stay. If you want to make it an IP – then you can do that too – and go rent somewhere else.

    But it is hard to say NO to so much free cash – its a one-off opportunity.

    All the best with it.

    Profile photo of phlangphlang
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    @phlang
    Join Date: 2009
    Post Count: 18
    June 7, 2009 - 12:44 am

    I'm 24 and have an IP that pretty much pays for itself

    How can you qualify for the FHBOG when you already have already purchased property in the past?????

    Profile photo of propertunitypropertunity
    Participant
    @propertunity
    Join Date: 2008
    Post Count: 136
    June 7, 2009 - 1:22 am
    phlang wrote:
    I'm 24 and have an IP that pretty much pays for itself. How can you qualify for the FHBOG when you already have already purchased property in the past?????

    I suggest you read up on the qualifications for the FHOG/B. As long as you have never lived in your IP you can still claim the grant for your first PPOR. Some people have 3 x IPs and still legitimately claim the grant for their first home.

    Profile photo of phlangphlang
    Member
    @phlang
    Join Date: 2009
    Post Count: 18
    June 7, 2009 - 1:30 am

    Thanks

    I didn't know that. Something new I have learnt.

    Regards

    Profile photo of propertunitypropertunity
    Participant
    @propertunity
    Join Date: 2008
    Post Count: 136
    June 7, 2009 - 4:30 am
    phlang wrote:
    Thanks.I didn't know that. Something new I have learnt.Regards

    Well don't just sit there reading – go buy a PPOR with the free cash before 30 Sep 09.
    Cheers

    Profile photo of phlangphlang
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    @phlang
    Join Date: 2009
    Post Count: 18
    June 7, 2009 - 5:16 am

    I would love to but have already purchased property back in 1995  and sold in 2004 (at the time was no grant available),which I believe would not entitle me to take up the FHOG/B offer .
    Unless you have any more ideas that I could do to qualify for the grant?
    phlang

    Profile photo of propertunitypropertunity
    Participant
    @propertunity
    Join Date: 2008
    Post Count: 136
    June 7, 2009 - 5:43 am
    phlang wrote:
    I would love to but have already purchased property back in 1995  and sold in 2004 (at the time was no grant available),which I believe would not entitle me to take up the FHOG/B offer .
    Unless you have any more ideas that I could do to qualify for the grant?
    phlang

    Eligibility says, you cannot have owned a resi property with someone else or own your own before July 2000 in any part of Australia.
    you can read up on the rest – but I think you're right – not eligible.

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