My next step to take?
Iam 23 yrs old and brought my property just over 6 months ago, I managed to wheel and deal and knock $50,000 off there asking price $430,000. Basic 3 bedroom house with the land size is 950sqm square block which is the main reason I brought the place.
I have recently moved back home after my first 6 months (first homoe buyer's grant) where the rent is covering 70% of my repayment's. Even while living in the house I still could save money, now moving back home I can save even more.
I'm now looking into what I should do next? Go find another investment?
Or save for the next 12 months so I can knock down my first buy and build Town Houses? (Council already approved)Also the way the house is set I could also renoavte with low cost to myself to make the place dual occupancy, with 3 bedroom, kitchen, bathroom up stairs as well as down stairs. Only common area would be the laundry.
These are my thought's can't wait for your response's.
Thanks
I would start by making sure your loan in IO on a good rate with all of your savings going into a 100% offset account.
Constructing will take a fair bit of resources, so may be a bit difficult at this stage as you may not have enough equity. If you can convert to dual occ, then you should get a lot more rent and that may add value too.If the value of the existing property has gone up, together with your savings, then you may be able to buy the next one and then repeat the process.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Tristan that property would still be considered your PPoR and as such will be CGT free for the next six years. Converting it to dual occupancy might affect that exemption. Just something to consider and maybe get some professional advice on.
Cheers, S/C.
PS Terry you never answered my query on exemption from stamp duty for first home owners who already have an IP. Perhaps I should simply phone the OSR and ask.Stampcam
I am not sure where you asked that question, but I believe the stamp duty exemption isn't available if you have already purcashed a property – but this is something you should ask your lawyer or the OSR.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terry. It was just back in "help needed/Stamp Duty!!!" Sorry, I shouldn't cross-post.
I've checked one of their information brochures on their website. It states: "For first home concession, you must never have held and interest in other residential land in Qld or elsewhere…"
Another thing to watch: They also state that if you start leasing part or all of your land to another person within a year of occupation of your ppor, you have to lodge a reassessment form, and I assume you will have to pay a pro rata amount of your stamp duty concession back to the OSR. We've been saying you only need to live in your PPoR for six months before renting it out to keep your FHOG, but you need to live in it for a year to keep your stamp duty consession (in Qld at least).
My interest in the IP first then PPoR is that I'm in the process of helping my children buy their first property, which is an IP 50:50 owned by me. I'm not affecting their future FHOG, but it looks like I've cruel-ed their FHB stamp duty exemption. PPoR concession in Qld is still pretty generous though, eg only $3500 for a 350k PPoR vs $10675 for an IP.
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