Hi red ncie to see you on again and appreciate the referral.

Always happy to help.

On a honest note in todays market with the modern technology we have to hand i find the majority of my deals are done by email or phone for clients. 

Whilst it is still was nice to sit down over a cup of coffee people expect more than just a simple home loan and therefore structuring the loan can more important to a client. Such arrangments can be done just as easily using the email tools we have to hand.

NOS1 if you ever want to shoot me an email I will always come back to you.

No the Grant is a Federal Grant which is adminstered individually by the States.

Qld you will get $14K on an established home and $21,000 on a new home.

No more no less until 30th June 2009.

This varies from State to State but certainly in Qld the only document lodged should be the Transfer Form however as soon as the wrappee lodges this then they are liable for Stamp Duty and my experience is that many dont lodge it until the decide to take possession.

ckgirl

Regretfully the answer is no as the date of the Building Contract is prior to the 14th October 2008.

Unless you can cancel the contract and start again you will miss out on the addiitional $7K.

Magic

There are a couple of varying ways the Family Guarantee style loan works depending on the individual lender:

1) The Guarantor will only need to Guarantee say 20% of the purchase price plus costs and therefore only need to show income evidence to support this amount. This assumes that the borrower can of course support the other 80% on his / her income.

In some case the lender will allow the property to be in the borrowers name solely thus qualifying for the First Home Owners Grant and the Guarantors will be separate.

2) The Guarantor is required to Guarantee the entire loan and in essence becomes a co borrower. This means the Guarantors other loans and liability will be taken into consideration and a mortgage fby way of a cross guarantee will be taken on the Guarantors property. Normally a first mortgage only is required and this can cause problems if the Guarantor wishes to move, refinance or borrow again during the period of the Guarantee.

You will not be able to hold the property as Tenants in Common with the Guarantor and qualify for the Stamp Duty concession or FHOG so will need to be extremely careful here.

Why not get your parents to take out a loan equivilent to 20% of the purchase price and then gift this to you.

This will mean the property will be in your sole name without the need for a Guarantee and will not disqualify you from claiming the relevant Grant and SD concessions.

Also will free up your parents to enable them to do their own investing without being tied to providing a guarantee.

Hi Greg

Couldnt agree with you more about checking the FHOG requirement in your State from the OSR.

Remember all the FHOG is a Federal Grant adminstered individually by the States hence the variance in certain criteria.

You will suprised how many people in the finance professional whether they be Bankers, mortgage brokers, Solicitors I have told are wrong about the advice they give their clients. Can't imagine how many people havent claimed what they are entitled to.

In a nutshell if the purchase is your first property in which you will have resided in as a principal place then you will qualify for the Grant. 

Yes the costs tend to be higher hence the positive returns.

Suggest you check out the Body Corporate Disclosure Statement which will set out the anticpated expenses going forward.

On the finance front unlikely to get more than 80% on a standalone deal however subject to other equity 100% plus costs as usual is available.

Have financed many of these for clients looking to balance the positive cash flow with some negative geared properties they hold for CG.

You could cancel the Contract and re-enter a new one subject to the Vendors Approval however watch the Stamp Duty implications (if they apply in your State) and also if the FHOG Form has been lodged then it is too late.

• Hi all

  Just a little clarity to the points raised.

  The "Boost" as it now known is available for eligible buyers on any property where the Contract was entered into after the 14th October 2008. For new properties this relates to the date the Building Contract was entered into.

  There is nothing to stop you subject to the Contract conditions terminating a purchase contract and then re-entering into a new contract with a date post 14th October 2008. Obviously if the original contract was subject to any special condition such as finance etc then you may have to enter into a fresh new unconditional "cash" contract but would certainly be worth it.