Hi Simon,

Thanks for the response!

The Wizard loan limitations
I am aware of the following limitations:
– Monthly repayments only (no problem)
– No extra repayments allowed (no problem)
– No redraw (no problem)
– Obscene fee if repaid within the first 4 years (not a major problem)
– Is there anything I’m missing?

My goal is to ensure the property will be as cashflow neutral as possible (I will put it up for rent in maybe 4 years time). I intend to do this by minimising my cost of capital as much as possible and then attempt to buy something below market value (I have been studying property valuation at TAFE as a hobby to increase my investor knowledge – but there is still alot to learn!). Then, if I do put it up for rent – make it fully furnished using the furniture I would have bought when I was living there on my own.

First home owners grant
“To qualify for assistance, neither the applicant nor their spouse (or de facto) must have owned a home prior to 1 July 2000, either jointly, separately or with some other person”. I never technically owned it. I was a beneficiary in a trust – my name was not on the title prior to 1 July 2000.

“Neither the applicant nor their spouse (or de facto) must have owned and occupied a home after 1 July 2000”. I have had my name on the title after 1 July 2000. But I have not occupied the apartment.

Thus, it is my thinking that I am eligible?

Thanks again for the response,

Simon