I'm 18 and looking to buy a property with my girlfriend when i finish uni(when im 21) and renovate it.
I live in NSW and to be eligible for the FHOG i have to live in the house for at least 6 months in the first 12 months of owning the property, this seems a bit drastic as i would only want to be in there 3 months(absolute) max doing the reno then getting out and making some cash not just sitting in there losing out on rent. Also i have another question, if i do this reno and stay the 3 months and dont get the FHOG and then move back into parents again like i am now. Can i then buy another reno just like the first one 3 years later(do the exact same) then 3 years later again can i buy my PPOR and live in there and all and also get teh FHOG for my PPOR, or do i lose eligibility(note i wont be living in any of the IPs(the 2 of them) for longer than 6 months.Chris.
if you live in any of your IPs you will lose the FHOG forever.
You need to live in them for 6 months and claim it or not live in them at all.
Cheers,
Hmm, that kinda changes things… ok … I could live inthe first reno, but to be able to take advantage of the full 6months i could buy a much more run down house(structurals still fine), and do a much bigger reno, also this will make my initial mortgage for the reno a little smaller as i will be buying a more crappy house and my budget for reno will only be a little bit more.
Also I looked at the renovation toolbox last night on the web, im not going to get it yet but it looks fantastic, 500 bucks thats alot of money for me when im only on about 200 per week and saving about 100-120 a week. I will probably be getting that kind of reno education in a year or so mabye a birthday or a christmas or something.
Also anotehr quesiton, is 6 months too long of a time to do a reno, i will be losing money through mortgage repayments., say i buy a 250k house and have a 40k deposit, im looking at about 300 per week interest costs.
And i have another dying question, over the last few weeks i have been thinking about this reno. i have always been buy 1 reno o it up and get CF+ and then save up for secnod reno(2 years later) do reno and get CF+ then 3 years after that buy PPOR and poay that off as fast i can and then continue my journey with IPS.
But if i do such a large reno, should i keep the reno-ed up IP and get CF+ if i can(which i should if my calcualtations are half decent) or should i sell and get teh equity then do another reno. Hmm, im sounding like a renovator and not an investor. what does everyone think about the reno and rent' or the 'reno and sell' issue.Also put into your math that you can rent rooms out in the house while you live in the house for the 6 months, this can help with the cash flow to pay the mortgage repayments.
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