澳洲Australia property First time investor: is FHOG a good idea?
在澳大利亚 The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m
I would love any help you could offer as I have a dilema.
I wish to invest in my first investment property as soon as possible. But I don't know the best way to go about it.
I live with my partner and he owns his own home. It is his house, not ours (I moved in several years after he bought it, we are not married, don't have kids, and don't intend to). I don't pay rent, just a share in bills. I earn around 62K. So my innitial plan was to save my deposit and calculated I would be ready to buy mid 2012.
Then a friend told me she just bought a house off a plan, she only had $3,000 saved, and was eligible for the first home owners grant and bonus (20k) so it became the rest of her deposit. In other words, she now owns a house for 350k with only 3,000 of savings! But she payed 8,ooo mortgage insurance. The difference between us is she intends to keep it as her home, and was paying rent before the move. I want an investment property, and don't have the expense of rent at the moment.
So I thought - maybe I could do that too and get into the market at least 6 months sooner. But in my research I discovered that as I live with my partner, and he owns his house, I am not eligible. I want to be completely ethical in all my actions, but I am wondering - if I move out of my partner's house and rent somewhere, would it be worth it financially to pay rent somewhere else just so I can get the FHOG, then pay mortgage by myself in the new property for 6 months, at which time I will turn it into an investment property?
I have totally confused myself.
Am I better off financially to stay where I am, save my deposit, and mid next year buy the investment property as I originally intended, without access to the FHOG?
Or, do I pay rent, then a mortgage, before have the financial benefits of the investment property? I cannot work out which one is financially better. It seems I would be eligible for the grant and the bonus, so that would be 20k from the government, but my expenses would be higher. And does it cost money to make your own home into a rental property?
The inconvenience of moving out of place I live in is of little importance to me - it is just a question of best path to take financially.
Thank you very much for any help you may have and apologies if these questions have been answered elsewhere - I have looked carefully but could not find.
Thanks for your time.
Id guess you arent eligible for the FHOG so not much confusion there