Hi All,
If you do a wrap and you wrapee is eligible they can apply for FHOG (to use as a deposit for the wrap) right?
When is that money made available (in QLD) i.e. when is it my bank account?
Thanks,
Emil
Emil
Yes the wrappee can certainly use it as a deposit but it will not be paid on the possession date.
In Qld the FHOG is payable 12 months after the possession date and once at least 10% of the instalment contract price has been repaid. This includes payments of both Prinipal & Interest.
I.e If monthly repayment is $1000 and the instalment contract price was $150,000 then it would take 15 months for you to receive the FHOG.
Again your MB should be giving you this information.
Richard Taylor | Australia's leading private lender
Hm, sounds a bit complicated. I wonder what's the reason for this.
So I take it, if the wrapee decides to cash me out before the 12 months and 10% of his contract price has been paid, the FHOG will not be payable, yes?
Does that mean that if he decides to get out early he should be able to put in the 7k himself?
Should I put a clause in the contract that disallows the wrapee to get out in the first 12 months?Cheers,
Emil
(ps. boy you are quick
)Hello Emil
Wrapping is not my area of expertise but it seems to me as if your making it unnecessarily complicated for yourself.
If the wrappee decides to get out early ( before the 12 months and/or 10% of the instalment contract price) this just means that he will get what he needs to pay you out from somewhere else (bank?). You just need to be aware that if you are using his FHOG as part of the deposit then you must be prepared to wait for this money until he meets the conditions.
Actually although I don't know Richard (Qlds007) except from the forum I think you could do much worse than use him as your MB. I believe that wrapping is his preferred investing vehicle and he has probably done more wraps than anyone else on the forum.
Hope this helps
Elka
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