Hi everyone:
Could anyone please help me with my problem:
I am able to get the FHOB but houses in the area where I would like to live are too expensive (I am currently renting). So my question is : could I buy an investment property using a "unit trust" (I will not use the FHOB) and after buy a house to live in (accessing to the FHOB and not using the "unit trust") in the area where I want to live? Hope someone could help.
Thanks in advance.
Futuro
Hi Futuro
You are still entitled to receive the FHOG if you purchase an investment property initially and all other qualifying criteria is met however have you thought about how you are going to finance an investment property purchase in a Unit Trust.
The number of lenders who will lend to either a UT or an HDT is diminishing by the day and those that do have specific post code area they will and will not lend in.
Richard Taylor | Australia's leading private lender
Hi Richard:
Thanks for your answer.
A friend and I want to start a Unit Trust where we can share the earnings and risks. We will fund the initial investment with own savings.
Hope this makes sense.
What does "lenders that do have specific post code area" mean? Sorry the ignorance.Cheers,
FuturoHi Futuro
I am aware of a small handfull of lenders that will lend to a Unit Trust and those lenders will only lend in certain post code areas.
You would be better off to form a Discretionary Family Trust with both of you as Trustees as this will at least open up a few more lending options for you.
Richard Taylor | Australia's leading private lender
Hi Richard:
Thank for this.
Cheers,
Jorge
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