Hi im a First Home Owner and im stuck with these two decisions.
1. Buy my first home as my PPOR
2. Buy my first IPWhich is the better decision, and what are the benefits and disadvantages of each ?
Im 18 at the moment and would consider buying in the next year, at the moment ive got 25k saved.Hi Mate
Congratulations on being motivated at such a young age.
The first thing to consider is the 'first home owners grant' (or whatever it is called these days
If you buy an investment property you won't be able to claim the grant. To make it worse when you do buy your first PPOR you won't be able to claim it either because you will have already purchased a property.The second thing to think about is the mortgage reypayments. Can you afford to live in it – or would it be better to rent it out and rent somewhere yourself (better still stay with your folds for a while). You will also get the tax benefits of this.
I think it is definitely worth getting the first home owners grant – this means that you will have to live in the property for 6 months. The FHOG will roughly cover your mortgage expenses for this time to you can see it as free rent for 6 months. Better still you could use the 6 months to do some small renovations and revamp the property a little bit.
Best of luck mate!
Cheers
Banjo Smyth
Congrats on the savings and getting in so early – keep up at this rate and you'll have set yourslef up in no time…
Quote:The first thing to consider is the 'first home owners grant' (or whatever it is called these days
If you buy an investment property you won't be able to claim the grant. To make it worse when you do buy your first PPOR you won't be able to claim it either because you will have already purchased a property.Incorrect, apparently. If you can show you have never lived in a previously purchased property, you can still get the grant. I only found this out myself a couple of days ago right here.
Congrats again and good luck!
Wow, I would love to get more information on how to by a IP first and use my FOHG later on, and secondly my idea would be to purchace my first PPOR and then have tenants living with me.
Is this a good idea ?
FHOG You need to live in PPOR for 6 months
see
https://www.propertyinvesting.com/forums/property-investing/help-needed/4324086?highlight=first%2Chome%2Cowners%2Cgrant
also do a google search on FHOG or First Home owners grant
this will provide a web site for your state on the terms of FHOGBest place to start is by reading lot's of books on property, investing and tax / structures.
Then figure out your objectives – what do you want to gain from investing? Reduction in taxable income? Passive cashflow (i.e income you don't have to work for)? Asset protection? A 'legacy' for future offspring? Is it simply a land grab (because they aren't making any more)?
Then speak with an accountant – they'll give you advice on what you've come up with. Make sure you go in with an idea though, because their time is your money.
THEN start looking for a place.
The first steps are the boring ones, but nothing can substitue for knowledge and it's easier and potentially far less expensive to put the right structures in place from the beginning than it is later on. Don't rush it – it's more important to get it right.
As for renting rooms in your PPoR – it's a personal thing that you'll have to weigh up yourself. Privacy vs income, all that stuff. It will have implications on your income / expenses etc. Best speak to an accountant to get all the info.
Thanks for the advice.
I think its best to buy a IP first and miss the FHOG.
I want to get into property sooner rather than later and the only places i can afford are rural, which are pretty good investments anyway. But due to work i cant live their as its to far.I guess things can change though in the next year, so ill keep reading and watch the market
You can do both – the IP first AND still get the FHOG…
https://www.propertyinvesting.com/forums/getting-technical/finance/4325600
Third post from the bottom of the page.
Go to work!
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