I need some advice on my situation:
I am planning on getting married soon: my fiance has a rental property on a block of land which she is subdividing to build a townhouse. I am yet to get a mortgage, however we were thinking once we were married of living in the townhouse for a time then taking out another mortgage using the existing equity to buy another property – perhaps to rent out or live in.
I'm unsure of the best move: we're marrying in 12 months and I'm eligible for the 1st home-owners grant. Once we're married, her existing mortgage will be transferred into both of our names – so I'm not sure whether to take out a mortgage now in my own name or wait until we're married to borrow – using the existing equity.
Additionally, what are the CGT consequences (beneficial/non-beneficial) of living in a house on a sub-divided property compared to the alternative of purchase another house for the primary residence and having two rental properties on the one block of land?
Any advice/suggestions greatly appreciated!
Once you are living together you would most likely no longer qualify for the FHBG, so you may have to make a move sooner rather than later. Also the FHBG starts to taper down from Sept 09 so there is more pressure to make a purchase asap to take up any benefit.
Hi, can you not sign a contract for H&L package from your girlfriend? Then you'll get the FHOG which is at least 24 thousand in most states.
You can time your marriage after the construction is completed.
Think of it this way: if it costs $200000 to build, you get 12% discount, immediate equity.
KY
I think you should take the plunge and grab the FHOG while you still can. It's an excellent step on the ladder, giving you plenty of time to live in it and decide what you want to do later.
Of course, after 6-12 months (once you got married) you could always decided to rent the place you buy out and move elsewhere with your wife. The Home & Land package idea also sounds like a good one, but if timing matters, go for one that doesn't involve your fiancee for safety.
If you have the means to put down a deposit, it's easy money!
Regards,
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