In Jan,we were lucky enough to be given a small gift of money (our family is not well off neither are we). This allowed us to purchase a small home (something we never thought we would do for at least another 5-10 years) and get the FHOG (Yeah!!). When we bought it, the vendors wanted to stay in the house for a short period until they found something new. That suited us as we could save a bit more money to do a badly needed kitchen and bathroom and water heater reno. before we would move in ourselves. Since then several things have happened. One: my husband was offered a house with his job on a farming property. Two: The vendors have decided they will not buy again and have asked if they can stay on. They are the original builders of the house and look after it as if it was still their own. So now we have the opportunity to live in a house rent free with my hubbies work and the great people would love to stay on…However you can see our dilemna as we got the FHOG and now dont need to move in the house due to a huge change in circumstances….What shall we do? DO we throw the vendors out and just pay it off ourselves for 6 months to keep the grant or what!!!!!!!!!!AGRHHHH.
Snowflake
as41,
Congrats on your purchase! I reckon you’re in a good situation. You could give the FHOG back, enjoy your new rent-free home on the farm, and you now have excellent tenants on your place- which can now be your deductible IP. Would you also have to give back some stamp duty exemption for FHB’s?
Not a bad dilemma
kay henry
Rule 1: Don’t panic.
Think about your options. Is there a way you can raise the $7000 and keep your heads above water? Have you checked the exact rules surrounding the FHOG, like how long you have to live in the house?
Think of strategies that might work, not of the difficulties you face. This could be an opportunity like no other.
It is definately a good situation to find yourself in.
Ensure the loan is interest only, focus on saving the FHOG money to return to the Office of State Revenue and live rent free. You have a great IP now. You could also do the kitchen and bathroom and depreciate them. So many options.
By the way, you will also be eligible for the FHOG again at a later date…
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksThanks for your comments everyone. What is the benefit to me of going interest only loan? OUt of interest. What sort of accountant could help me down this path with the property? I did a search on yellowpages and found hundreds!!!How do you select one in the hope that they are any good?
Snowflake
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