Using the FHOG for investment properties

Viewing 6 posts - 1 through 6 (of 6 total)

Captain_Picard
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@captain_picard
Join Date: 2003
Post Count: 27
October 31, 2003 - 1:46 pm
I had been told that the First Home Owners Grant (FHOG) could only be used for buying your own home, so I basically gave up on it for using it as a partial deposit on my first investment property. However, yesterday, I met with my bank home loan lender, and he basically said that the FHOG would be fine as most of the deposit, along with, say $3000 for legals. Whats the go with this?
Captain Picard
Mortgage Hunter
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@mortgage-hunter
Join Date: 2003
Post Count: 3,781
October 31, 2003 - 1:58 pm
If you are OK with fraud then go for it.
I can’t believe a bank employee would encourage this.
Read the rulings at http://www.osr.nsw.gov.au. The FHOG is clearly designed for people buying their homes.
Sorry if I come across a little harsh – just annoyed at people who encourage others to take financial risks like this. You are the one who carries the responsibility – not him!
Simon Macks
Mortgage Broker
mortgagehunter@iinet.net.au
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Billfromoz
Participant
@billfromoz
Join Date: 2003
Post Count: 381
October 31, 2003 - 2:00 pm
G’day Picard…
I suggest you talk to a lender that knows what they are talking about. It is a FHOG not FIPG.
You were always right.
Cheers
Pte. Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
billomara@iprimus.com.au
Captain_Picard
Participant
@captain_picard
Join Date: 2003
Post Count: 27
October 31, 2003 - 3:20 pm
Thanks for your comments guys. It looks like my deposit will take a while longer to save up, as I have no equity.
Captain Picard
silverbullet77
Member
@silverbullet77
Join Date: 2003
Post Count: 4
November 1, 2003 - 2:51 am
The recommended website is down so not sure but I did hear a story…
Buy unit with tenant on 10 or 11 month lease to go, take rent for this period and then move in before 12months is up.
I do not know the legalities of this strategy and it may well be fraudulent as well. Will wait for website to come back online.
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
November 1, 2003 - 3:24 am
That is OK. You just need to move in before the 12 months is up.
Cheers,
Simon Macks
Mortgage Broker
mortgagehunter@iinet.net.au
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.