First Australian property!

Gazza I'm pretty inexperienced myself so I don't want to tell you something that sounds like wisdom when it's not but as nobody else has answered you yet I may as well get the ball rolling. 

In relation to the FHOG, I looked into this in Tas a few years ago. Back then the rules were that you could buy an IP if it remains as an IP and you don't claim the FHOG for it. Down the track when you do buy a PPOR you can then claim the FHOG. Doing that though is counting on the fact that the rules will be the same at that time down the track when you do buy the PPOR. There is no guarantee that the rules won't have changed by that point. I just contacted the State Revenue Office in Tas and asked them about it. There were a few people there who gave me vague answers to the effect that it was not possible, so I kept contacting different people until I got a clear answer ie someone who clearly knew what they were talking about, cited the relevant legislation etc. I suggest you call the equivalent office in WA and ask them about it, and don't accept vague answers from the receptionist who thinks he knows what he's talking about. Some mortgage brokers may have a bit of an idea too.

At the end of the day though, not taking any stamp duty implications into account (which I don't know about anyway), it's only $7k, and a well chosen IP should make up for this. 

There is a discussion somewhere on this forum of buying PPOR v renting and putting the money towards IPs. I can't find it now but it's on here so have a bit of a look. Basically though, most people agreed that renting and buying IPs is the way to go. 

In regards to the question of buying in a trust/corporation setup is this to try to help you claim the FHOG? I don't know how it would affect you in that sense – take it up with the State Revenue Office. There are different tax rates for companies than for individuals, but there are also implications for asset protection. People often use a trust/corporation setup to protect their investments so that if someone breaks their neck on one property and sues the landlord for all he's worth, they can only actually get at the one property. If you're planning to build a big portfolio it is very smart to think about it from the beginning because it is much harder to change the structure later on (and can cost you money). If that's the way you're going though you really need to see professionals who are familiar with that area, ie a lawyer and an accountant who understand property investing. Perhaps some of our WA friends can give you a few leads. 

Hope this helps, good luck. 

Hi Gazza

Couple of comments as follows:

1) Is the stamp duty higher for an IP (in WA)?

    No the rate is the same although their is a concessionary rate where the property is your first home.

2: Is there any way I can still get FHOG and stamp duty concession if I buy IP first, then PPOR next year or later?

    No regretfully not. FHOG = Yes S/D = No.

3: Although It won't help buying in a trust if i'm a trustee, what about if I buy an IP in a trust, with a company as trustee and me as director or is that just as useless? Any estimated annual costs for related accounting etc?

   No quite sure of the actual question. If you are asking whether you can get the FHOG / S/D concession where you have  

  purchased an IP in Trust initially then regretfully no. In regards to annual costs the Trust needs to lodge a Tax Return and you will need to pay the Annual ASIC fee for the Company. Bit more Accounting costs and possible Land Tax  consideration but need to also think of the longer term asset protection benefits and income distribution benefits.

4: If that does help, are fees, interest rates, stamp duty, land tax, and any other costs higher when lending to /buying in a company/trust structure? By roughly how much? That could soon turn positive cashflow upside down!?   

See above. In relation to additional borrowing costs in general No but some lenders will charge legal fees for assessing the Trust Deed.

Cheers

Yours in Finance