Hello, all you investing guru’s. I am new to all of this and have just finished reading 0 to 100, which I found to be extremley inspiring and I like the fact the guess work is taken out of the picture a lot of the time.
Anyway, firstly, I am entitled to first homebuyers grant and would like to use it if possible. Anybody in out there know the terms and conditions regarding the miniumum time as the owner I must occupy the property and when it is legally ok to rent the property. Anyone who has a knowledge of these terms and conditions I would like hear from you.
Also, is it possible to negoiate the 10% minimum deposit they require or is it carved in stone that as a first home buyer I have to come up with the 10%.?
Also, my dilema is that I have been researching a rural area, here in WA where I would like to purchase an positive cash flow property. I have the deposit plus more but I lack a regular income and the banks say I must be employed for a minimum of 6 months.
Because I work in construction / mining the work is on or it is off but the money I earn is excellent and the lay time is great too. I am hoping I land work on a bog construction job soon that will see me employed for a minimum of maybe 12 months but I am keen to invest now. Any answers anybody?
Any WA / Perth people out there with investing tips I would be greatful. I am flat out even getting past the 11 second equation. Perth property prices see me out of the picture and I am looking to Collie to invest, where, for example, I can pick up a 2 bed, weatherboard in town for say $54 000 and rent for maybe $80 weekley? I am still further investigating this avenue and would appreciate any advice anyone could offer me. Also I am keen and have a flair for renovating so there is that option as well.
Thanks
Nadeenheya greenhorn
Just some ideas about Collie. Parts of it are floodzone, so you need to check that out. You would need to get about $110-$115 a week on a 54k place to make it around the 11 second solution thing.
The Collie Mail newspaper will give you some idea of what’s happening in the town. You can find it here:
http://collie.yourguide.com.au/display.asp?class=news&subclass=local
Remember that if you’re earning 80 bucks a week, and your sewage/toilet breaks down, you’ll still pay 300 bucks or whatever it might cost, to get it fixed. In isolated places, such as Collie, you may even pay more, as tradies can charge what the market will pay. It’s why it’s good to have extra money in your pocket for repairs. A 300 job will be almost 4 weeks of your rent. Whereas if you have a higher rental yield, such a job will only cost you perhaps one week’s tenancy.
There has also been significant real population decline in Collie. You can check this out on the net.
Just do lots of checking on places before you make a decision
It’s fun finding out about places, but sometimes, the more you know, the more reasons you know why, if you have many choices, you might not invest in particular places.kay henry
hi nadeen, i too have been looking into the first homebuyers grant (FHOG).You can buy as many investment properties as you like and still be eligible for the grant as long as you don’t live in any of the properties.Once you receive your grant you can still rent your propery out as long as you reside in it within 12 months of receiving the grant.Also the Act does not specify a minimum time period that the applicant must reside in the home.The onus is on the applicant to demonstrate they have made the home their PRINCIPAL PLACE OF RESIDENCE.So that part of it could be open for discussion.Anyway you can get onto the website http://www.firsthome.gov.au
Also, i have recently discovered that the/my bank will only lend anywhere between 40%-70% of the value of the property in regional areas. Is this the norm or would i be better off going through a mortgage broker? Can anyone help with this?
ANITA.Hi Anita & Nadeen.
I am sure that you can only claim the FHOG on your first property purchase, that you have to have it as your PPOR for at least six months (new rule), and you must occupy it within the first 12 months. Please check with the relevant authority or a qualified professional.
Some lenders won’t lend at all in some postcodes.
TerryTerence McMahon
HomeWin
FinanceUse a broker as many lenders are different when it comes to rural postcodes.
Save you the time of calling them all.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks for the replies,
It could be that each state has a different policy about the FHOG, I’m from W.A. and i’ve got my hands on the brochure which was printed in Sept.2003 so i’ll need to check about the minimum time of residence.I did ring them the other day and the lady on the phone said that i could “go out and buy a block of units today”(i wish)”and still be eligible for the grant as long as i didn’t live in any of them.”
This is all new to me and i’m still double checking everything and i do appreciate your comments.
THANKS
ANITA.
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