yo..
im looking at buying my first ever house.
ill be cashing in on the first home owners grant, which means ill have to live in it.
but i am still focusing on the investment side of things..
the problem is its pretty impossible to come even close to finding a property that is capable of being cf+ in my home town.
do you think i would be better off to just bail on the opportunity of getting the 14k fhog, and look at buying elsewhere for an investment?
or should i just bite the bullet and use the fhog to buy a house and pay it down as much as i can.
i should note that the capital gains are fairly steady here at the moment, and there are a few cheap buys around.
there are a block of units just one block from the beach going for a little over 300 each, that are 2 story and 3×1.
my step father sold one of his a few years ago for 420!
what would you do if you were in my boat?
cheers,
jakehaha i just contradicted myself by saying the capitals gains are steady, yet the price on the units has gone down 100k!
Jake remember in order to satisfy the FHOG conditions you only have to reside in the property for a 6 month continous period in the first 12 months of ownership and thereafter you are able to rent the place out.
Why not look at doing this. Take out a 95% interest only loan with 100% offset account and once the conditions of the FHOG are satisfied rent the property out. Utilise the balance of any deposit plus FHOG proceeds to go again and purchase a new IP.
Richard Taylor | Australia's leading private lender
Hi Jake,
It call comes down to the maths really. If you can't find the property that you want in your own town, then find one that will get you as close to possible for what you want. Then, sit down and do the sums. Weigh up what it will cost you, add in the FHOG etc. Then compare it to a property that you would like to buy (providing such a property exists). Once you have these numbers, then you'll have a clear indication as to which will leave you in the best situation.
Also take into account potentially higher interest rates. I'm not saying that they're going up right now, but eventually, they will and that may have an effect on your CF in the future.
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