HI INVESTORS,
THIS IS MY FIRST POST TO THIS SITE.I have saved up a healthy deposit for my first home property investment.I was after any tips or links of info of making my first home the start of my property investment portfolio.was thinking of spending upto 210k.Many of you would have been here before ,if anyone could help me out??thanksHi Smartmoney, I suppose it will depend on how much of a deposit you have saved. I assume from the info you have provided that you are a First Home buyer. If so then I assume that you are aware that you would not be eligible for the FHOG unless you intend to live in the property.
So your deposit must cover the banks required savings (usually 5%, although there are ways around this) plus the costs of purchase, such as stamp duty, bank fees, mortgage insurance and solicitors fees etc.
Also will depend on what state you are buying your proeprty as these costs vary from state to state. Qld tends to be the most expensive.
Hope this helps
Davidsm70
Newbie Smart money. I’m now 24 yr old, almost uni graduate who bought my first house with a few grand plus home grant. In 18 months, I’ve made 320% just by living in and painting my house. Now I’m going for more with a subdivision.
It’s your first house, please buy small. Not 210 000, instead try 50-60 000. How much money you make depends on how flexible and smart your choice is. Do you have a job and can you buy somewhere other than Sydney or Melb. Don’t buy in Melbourne or Sydney but don’t buy a lemon either.
Right now, I know about numerous resort style units in a major regional (tourist) town which are priced between 40 and $65 000. They are major positive geared. Imagine, for example, if you moved to this town, let the government fund your 20% deposit, found another job and made $50 000 in the next six months (for example). Then you could jump into Sydney or Melbourne for the property slump.
Be smart, positive gear. Buy something you can add value too.
thanks guys,
ive got about 20k.I f i was to live in the property for a period of time ,any idea?would i still qualify for the first home buyers grant.Yes you must live in the property within six to twelve months of purchase and you will have a period in which you must stay in the property. I would check with your local office of state revenue.
Be careful if the government thinks you are avoiding tax they can come down on you hard.
Davo70
Hi smartmoney,
Sorry if I’m replying twice – my earlier reply didn’t come up for about 10 minutes, and I wasn’t sure if I stuffed it up.
Anyway, Davo70 is right – you need to live in the property within 12 months after settlement.
But the FHOG Act doesn’t require you to live in the property for any minimum period. All you need to do is to prove that it was your principal place of residence (PPOR). Things that help prove this include redirecting all mail to your new address, as well as notifying government agencies about your new address (eg driver’s licence, local council, etc). Obviously, the longer you live in the property, the easier it is to prove that it is indeed your PPOR. If you only live in it for a short period of time, this could technically still be ok (even if it’s a week!) as long as you can prove that the property really is your PPOR (although I think that anything less than a month is pushing it uphill unless you’ve got a really really good reason).
But as Davo70 says, be careful – if you aren’t genuinely going to live in the place as your PPOR, don’t claim the grant. The penalties are way too high if you get caught out. Not only do you have to repay the $7,000, you could be hit with penalties of up to another $7,000. You could also be prosecuted for the criminal offence of misleading the government which carries a maximum fine of $20,000. If that’s not bad enough, the government also has the power to lodge a memorial on your property which overrides all existing encumbrances, including mortgages. This in itself is likely to breach your loan terms with the bank, who will then repossess and sell the property. Like I said, it’s not worth taking the risk, unless you really do intend to live in it as your PPOR.
Why do I know so much about this? I’ve been writing a book (mainly for fun, and also to help with future property purchases) on property conveyancing, which has a chapter dealing with the FHOG. I had to do quite a bit of research on the ins and outs of the FHOG to make sure my chapter was correct, and the above is some of the fruits of my labour!
enjoy!
M
The topic ‘FIRST HOME BUYER/INVESTER 22Y/O’ is closed to new replies.
