My wife & I live in the northern suburbs of Perth & we are about to buy our first home. We can get the 7k from the gvt & we don’t hve to pay any stamp duty when purchasing up to 250k.
What would you do? What would you buy?
Keep in mind we have to live in it for at least 6mths & the goal is income from properties.
Are you up to the challenge?welcome to the forum solomon. if the challenge is to answer your brief question, its like this.
you need to start small. if you haven’t yet secured a principal place of residence (ppor) then do that first. the idea is to build as much equity that property first. then and only then are you really able to start talking about investment properties. Sure some here will say that you can do it on as small amount of equity as possible but thats just plain risky if you ask me. Why do you have to `…live in it for 6 months…’?? not sure what you mean by this. Good luck, Eric.
Hi Solomon
I agree with Neo25x5 start off with something small, that doesn’t break the budget. When I bought my first place I looked at places close to amenities (transport, schools, shops etc) for re-sale value. I bought a unit 5kms from the city – it may have been small & a little old but I knew it would make money (it doubled in 12 months).
Perth has bargains everywhere, you just have to look. I like the idea of building in new land estates where the new stations are. If you can pick up a block in the first stages I believe you can make money almost straight away as when the release the next stages the prices are increased. But building can be a hassle.
Well there my thoughts – but if you look hard enough you’ll find a bargain.
Good Luck.
Originally posted by solomon:What would you do? What would you buy?
Keep in mind we have to live in it for at least 6mths & the goal is income from properties.
Are you up to the challenge?Hi Solomon
I hope I’m misreading you mate, because your comment “Are you up to the challenge?” sounds more than a tad arrogant. Please let me know I’m wrong, because I’m giving you the benefit of the doubt by posting the information below.
As well as reading below, please go the the top LHS of http://www.propertyinvesting.com ‘s homepage, click on “Search” under the Forum heading, type in FHOG, and/or “First Home Owners Grant” and you will be deluged with a myriad of highly informed posts showing legalities and loopholes of FHOG. Beware, it varies markedly on a state by state basis.
Happy reading, and I have saved a lot more on my H Drive where that’s come from.
Cheers
Greg
FIRST HOME OWNERS GRANT
Who is eligible for the grant?
You are eligible if:
• You are at least 18 years of age on the date of entering into the eligible transaction. (An exemption from this requirement may be considered in certain circumstances.)
• You are buying or building your first home as a natural person, not as a company or trust.
• You, or a joint applicant, are an Australian citizen or a permanent resident.
• You or your spouse have not previously owned an interest in land in Australia that had a residence on it prior to 1 July 2000. This includes investment homes.
o If you are married or have been living in a de facto relationship for more than two years, neither you nor your spouse can have owned a home, individually or with any other person.
• You or your spouse have not, on or after 1 July 2000, owned an interest in residential property in Australia and lived on that property.
• All applicants who enter into an eligible transaction before 1 January 2004 must occupy the home as their principal place of residence within one year of the completion of the transaction to which the application relates.
• All applicants who enter into an eligible transaction on or after 1 January 2004 must occupy the home as their principal place of residence within one year of completion of the eligible transaction and remain in continuous occupation for a period of at least six months.
All owners of the home must be parties to the grant application.
Neither the applicant nor applicant’s spouse are entitled to the grant if either have received an earlier grant.
Who is eligible for the additional $3,000 grant?
Who is eligible for the additional $7,000 grant?
I signed a contract for a new home but haven’t submitted my application, can I still apply for the $14,000 grant?
I have owned an investment home previously. Can I still be eligible for the grant?
A person is not eligible if they or their spouse (including de facto spouse) has had a relevant interest in any residential property in Australia prior to 1 July 2000, whether they live in it or not.
However, a person may be eligible if they or their spouse (including de facto spouse) has only ever had a relevant interest in any residential property in Australia on or after 1 July 2000 and they have not resided in that property.
If I am divorced, and my previous partner owned a home in their own right, am I eligible for the grant?
If my partner has previously owned vacant land but not a home, will we be eligible for the grant on the purchase or construction of our first home?
If I have owned residential property in any other State or Territory, will I be eligible for the grant if I purchase a home in Queensland?
If I inherit an interest in a residential property, can I apply for the grant when I purchase or build my first home?
What if I have owned property in another country?
If the contract to purchase an established or new home, or to build a new home, was signed prior to 1 July 2000 but settlement doesn’t occur until after that date, can I qualify for the grant?
If I have owned vacant land or a commercial property prior to 1 July 2000, would I be disqualified from getting the grant?
If I delayed signing a contract before 1 July 2000 by entering into an option agreement in order to secure my interest in a particular home, am I still eligible?
I am an owner builder so I haven’t entered into a building contract. What criteria do I have to meet?
Can a trust or a company apply for the grant?
Are permanent residents or New Zealand citizens able to apply for the grant?
When does building work start under a comprehensive building contract for the purpose of determining eligibility for the additional $7,000 and $3,000 grant for new homesThanks for the welcome and for the tips so far Eric, Rellie & Greg F.
I promise you I’m not arrogant but thought the statement would invoke a response as I’m sure you probably get a similar question often.
I would still appreciate more advice as I am looking for a faster method than spending the next 3 years or so paying after tax dollars to increase equity before I can play the investment game.
Thank youSolomon,
I apologise for the fast reply. But this should help, let me know if you want more specifics. I don’t know the perth market too well but if you can:
* Buy a two storey(nothing too flash), live upstairs, rent downstairs. or simliar scenario
* Live in it as long as you have to to satisfy the grant.
* Complete renovations
You have now increased the equity in the property. If you could do this for say $250k(for e.g.) including reno and you also rent below for $120p/week(again e.g. as I don’t know your market).
You property may now be worth $280-290k and you have another income(the rent). These two things could be just what you need to go to the bank and crack a deal for investing.
It is all about knowing if you can service the loan, there is always a way around obtaining the money that you require from the bank/institution.
Of course if you have a business, go a low doc loan or similar. If you are really keen, set up a trust and use that to do low doc loans off.
These are all possibilities. Be smart with these suggestions and I reckon you might be onto a winner. get into it!
All the best.
J.
Originally posted by solomon:I would still appreciate more advice as I am looking for a faster method than spending the next 3 years or so paying after tax dollars to increase equity before I can play the investment game.Thank you
Hi again Solomon
Thanks for clearing up my query. [biggrin]
Re “to FHOG or not to FHOG”. If you prefer investment, the answer is simple:
~ Buy your 1st IPs BEFORE you buy your own home (ie., this is what Steve and his wife did, they RENTED whilst they were building up their massive portfolio).You have 2 key questions to consider:
1. Depending on which state you live in, will buying an IP BEFORE buying your PPOR preclude you from getting your PPOR when you finally decide it’s time to buy it?
2. How do we buy +CF properties in the current market?There are answers to both questions, but you have a lot more reading /research to do yet to get comprehensive answers to both.
Cheers
GregThanks J & Greg.
No worries Solomon, let us know how you go.
J.
Just some thoughts:
1. The sooner ou invested, the faster your investment would grow
2. The cost of real estate would continue to increase in the future, we are making more people, but we are NOT making more land
3. The dream of owning a home would become an impossibility for more and more people
4. The demand for apartment buildints would increase along with rents.We are giving away the free reports and audio files by Robert G. Allen for the next 3 months. You can email me for the free reports and audio files.
Hi JackHu,
I’m not having a go at you, but would you mind substantiating your assertions with some kind of fact basis or analysis?
I strongly disagree with your points 1, 2, 3 & 4, however, I think the rest of your post was accurate and helpful.
Cheers, F[cowboy2]Jack Hu – I’m reading through the various questions people are asking under the heading of ‘active topics’. It appears that your comments and interesting thoughts are replicated (ie cut and pasted) throughout a variety of questions people are asking. Is the same thought occurring to you over and over, or are you trying to get your postings number up, or is the motive about promoting free whats-its?
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