Hi,
i’ve had the idea to go into business with a friend. We are both 19 and studdying full time. We plan on buying a property in my name, using the first home owners grant (i believe it is $7000 in melbourne) and living in it for six months. In this way, we can qualify for the grant and pay off a portion of the property. We then intend to rent this property out, while finding another property for us to move into and buy in his name (thus once again getting the first home owners grant).I understand that there is another $5000 in melbourne for first home owners… how do i qualify for this?
If we do the properties in joint names do we only get one grant and then the second person forfeits his?Any advice or feedback would be great. Thanks,
giladOriginally posted by gilad:If we do the properties in joint names do we only get one grant and then the second person forfeits his?
Yes that is the case. Both on title, one FHOG only. Second guy loses entitlement.
cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985NODOC Loan – 65% Loan – No questions asked! 6.85% Rate!!
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
thanks,
i understand that australia wide you can receive the first home owners grant of $7,000. I shouldn’t have a problem receiving this as i have as this will be my first property, i will live there for 6months+ and i am an australian citizen.I was under the impression that there was another $5000 grant for first home owners? does this exist in melbourne or is it only new south wales? is there anything similar in melbourne?
Does anyone know the rough stamp duty prices in melbourne? if i am a student or a first home buyer do i still need to pay stamp duty?
Can anyone tell me if there are other expenses involved….
thanks a lot,
gilad
Hi,
Interesting plan, but remember that stamp duty and other costs (such as legals etc.) may cancel out some of your projected gains. As such, be sure to do your sums carefully.
Furthermore, it would be wise to include the -ve cashflow (if any) associated with you living in the property for six months when weighing up the cost:benefit. My gut feeling is that the savings will be negligable overall on a net basis.
Re: what Simon says… I imagine you will only have one name on title per property and a gentlemen’s agreement of some sort. I’m not sure this is the best way to begin a sustainable business relationship.
Finally, there are some moral issues about whether what you are doing is in the spirit of the legislation. In short – yes, you may be able to make money, but at what cost to your integrity? You may find there are better ways to make more money for less effort.
Oh – here’s the link about Vic stamp duty exemptions.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
thanks for the advice.
I understand what your saying, but you also suggest that there are some “easier ways” to make “more” money. Could you give me some examples? Please remember, that i am a university student and am only earning about $20k a year.
thanks,
gilad
You must be logged in to reply to this topic. If you don't have an account, you can register here.
