Hi all,
Does any one know the ruling on using the FHOG to buy a duplex, live in one side and then renting out the other?[blink]
I live in WA and this would almost be the perfect way to get started, if it is legal that is![wink]Any ideas??
Cheers
C@34
Forgive my naiivety, but aren’t all duplexes on a single title – as in, is that not the way that they are built?
The Mortgage Adviser Posted – 14/06/2004 : 15:36:59
If it is on single title, you will have no problemI was of the opinion (dangerous, I know) that duplexes are built on a larger block (for legal reasons) to accomodate the duplex but that they are still on one title. I was not aware that the title could be split. Or are you reffering to ‘Strata Titling?
Cheers
C@34
Hi Calvin,
I am no expert on FHOG (that stage in life passed me a long time ago) but I would contend that the FHOG could only apply to the duplex half you are going to live in rather than the whole property (I stand corrected)
As such buying a duplex (in total) would require you to live in one half (and get FHOG) for this side and then have a full loan for the other side.
Given that one half of your property is an IP you would be best advised to have two loans anyway – the investment half interest only and the PPOR P & I. This will make accounting easier too.
Furthermore your PPOR Loan would be smaller because of the FHOG applying on that half of teh duplex.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Rob,
If there is a single title I would agree with you – as I understand it many (most?) duplexes are sold with separate titles and as such there are generally speaking two titles involved – hence the tenor of my comments.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Most are already on a strata title, but I think calvin is describing on in the country (regional area) and it is quite possible that it is on a single title. ie buy the pair or not at all.
Advantage for him is that he can strata title it and reap the benefit of having two.
But all a moot point till he can confirm the title statusWaiting calvin ……………
KP
I’m in contact with the ATO. Awiting their response!
watch this space!
cCheers
C@34
Hi all,
just got off the phone with the FHOG mob (talked to the ATO and they hand-balled me over to these lovely people). Cindy confirmed with her supervisor that, should I fullfill all the requirements of the FHOG selection criterion AND the Duplex is on ONE TITLE, that they can see no reason why I would not be elegible for the grant while renting-out the other unit! So it’s OK to buy the duplex one a single title with the FHOG as long as I follow the rules and live in it for the specified time. The second can still be rented out.
As for a duplex on strata titles, it is as if two separate houses! FHOG for the unit I live in, Nothing for the other unit!
Hope that helpsCheers
C@34
This is Cool advice Calvin, so does that mean you can buy a house that is suitable to divide in half and turn the house hall way ‘as I put it’ into two houses and rent one side.
If so this would be a very strong consideration to fit the criteria of my first Investment Property, which actaully is really my first home.
Does this split house set up qualify for the FHOG and able to be done the same as doing a Duplex?
I guess it does, because it has to be fair, whats good for the goose is good for the gander.
But I wouldn’t mind hearing some clarification from you.
Can anyone explain more if this would be viable and the implications of both?
***********************
Online Positive Cashflow Financial Analysis Calculator.Jaffa, in your case, you would be buying a single dwelling (so no probs with FHOG), and once owning, you would be living (thereby meeting criteria) whilst dividing the property. So I don’t see any hassles.
I’ve seen what you are talking about done extensively in Rockhampton (only cos a friend lives up there and lived in one of such places), so it obviously has merit….
Cheers
MelYead, I new it had been done quiet a bit, it’s fairly common. But I didn’t know if it was possible to do and also with the FHOG. That’s good, Thanks.
Hi Calvin,
If the duplex is in 2 seperate titles, bad luck you can’t do it. If the duplex is one title (thats rare) Technically you could do it.Thanx all. I am second in line to tat SINGLE TITLE Duplex (Tadah), so should anything go wrong with the other purchaser I’m in there!
CheersCheers
C@34
I live in WA and this would almost be the perfect way to get startedJust reading into this some more! It would be the perfect way for you to get started. It’s BEWTAFULL!! Care to share some of the figures. Even if you didn’t get it; the ideas there. Though they maybe rare to find (just going on what others say) you’ll know what to try and find.
K,
Duplex advertised price: $270K,
Currently rented out at $215/week,
Yard untidy, rest of street (no thru rd) houses owned by mining employees and Govt. Servants.
Ave. rental prices for 3Br, 1 Ba $250 to $280 /week.
Not sure what it costs to split a title, but the rates and Taxes are in the vecinity of $1100 to 1300 p.a., so they would double (once split).
My idea would have been initially buy it and move into side a (or
, rent the other side out once I cleaned up the yard for $250 (no need to be the most expensive), keep the house on one title for 1 to 3 yrs (really bomb the mortgage – put everything into it!) then split and use the equity tobuy several houses, either up here or in Perth.
Just my thoughts/dreams so far.Cheers
C@34
Hmmmmm C@34,
Saw one advertised down the road from you (Karratha) same deal….but I think it is now under offer…BUMMER !!!
But now you’ve got me thinking……
It seems that most of the older ones in town are still on one title..
CAn you confirm if yours is Brick or fibro ???
Cheers…KP
, rent the other side out once I cleaned up the yard for $250 (no need to be the most expensive), keep the house on one title for 1 to 3 yrs (really bomb the mortgage – put everything into it!) then split and use the equity tobuy several houses, either up here or in Perth.You must be logged in to reply to this topic. If you don't have an account, you can register here.
