$55k.. do I have enough deposit for my goal?

By the 10k do you mean the grant? I'm not that up to speed with WA laws, but purchasing an IP may implications on your ability to access grants/duty concessions.

In Cbr, if you own an IP, you wont get the duty concession.

If you haven't already, I'd speak to my conveyancer/local OSR to confirm that you can do this.

Cheers,
Redom

Same in WA - if you buy IP first, no FHOG for you. If you want to take advantage of grants though, you could potentially buy the cheap house first and get the $3000k rather than $10k though, live in it for 6 months then convert to IP and buy PPOR. If you buy sub $400k there are other concessions too to help with purchasing costs.
 
Same in WA - if you buy IP first, no FHOG for you. If you want to take advantage of grants though, you could potentially buy the cheap house first and get the $3000k rather than $10k though, live in it for 6 months then convert to IP and buy PPOR. If you buy sub $400k there are other concessions too to help with purchasing costs.

I'm pretty sure buying an IP first in WA doesn't disqualify you from getting the grant later on.

Otherwise I'm down with your plan about living in the place for 6 months - its what I did with my first property.
 
Can I clarify... If i find deal I like with a lender and pay the LMI then refinance at a later date, would I then have to pay another LMI?

If that is right I have to pay LMI again every time I switch lender? This could get expensive.

Setting yourself up for an investment portfolio is not a simple procedure huh? I had heard many people say that they wish they had advice before they started, perhaps this is why.

I am adamant I will buy an IP and a PPOR somehow, even if.... cant believe I'm going to say this......... I have to sell my boat!!!!! That would raise me about $7k but a sad face would prevail for a long time so I am not sure this is worth it.
 
I have to sell my boat!!!!! That would raise me about $7k but a sad face would prevail for a long time so I am not sure this is worth it.

Whoa whoa - gotta live too. Setting yourself up for the future is important - but so is living in the present. If you love your boat - don't sell it.

Cheers

Jamie
 
Can I clarify... If i find deal I like with a lender and pay the LMI then refinance at a later date, would I then have to pay another LMI?

If that is right I have to pay LMI again every time I switch lender? This could get expensive.

Setting yourself up for an investment portfolio is not a simple procedure huh? I had heard many people say that they wish they had advice before they started, perhaps this is why.

I am adamant I will buy an IP and a PPOR somehow, even if.... cant believe I'm going to say this......... I have to sell my boat!!!!! That would raise me about $7k but a sad face would prevail for a long time so I am not sure this is worth it.

Yes!!! If you switch lenders you'll have to pay LMI again. Definitely very costly.

Regarding the ING talk, they have a $1 LMI offer for PPORs atm (as someone put it, the price of a frozen coke!). Therefore if you have to refinance out, you aren't exactly losing much apart from refi costs - although I do love my frozen cokes!

Cheers,
Redom
 
Same in WA - if you buy IP first, no FHOG for you. If you want to take advantage of grants though, you could potentially buy the cheap house first and get the $3000k rather than $10k though, live in it for 6 months then convert to IP and buy PPOR. If you buy sub $400k there are other concessions too to help with purchasing costs.

My rough aim before I stumbled upon LMI issues by my broker was to spend roughly $500k or less on PPOR and $300k or less on IP. My thoughts were 5% of each would be total of no more than $40k $25k + $15k and add the stamp duty on top of each keeping me around the $55k total spend. The broker tells me that to buy at about $500k I will need about $45k at 95%LTV and $35k for IP @$300k with 95%LTV

More than happy to scale those figures back to achieve what I want to achieve as getting into an IP is more important to me than a nice house. My wife doesn't see it that way but I know she will be happy to help my on my way to my goals and our future.

What if I said PPOR = $450k and IP = $250k?
 
Can I clarify... If i find deal I like with a lender and pay the LMI then refinance at a later date, would I then have to pay another LMI?

If that is right I have to pay LMI again every time I switch lender? This could get expensive.

Setting yourself up for an investment portfolio is not a simple procedure huh? I had heard many people say that they wish they had advice before they started, perhaps this is why.

I am adamant I will buy an IP and a PPOR somehow, even if.... cant believe I'm going to say this......... I have to sell my boat!!!!! That would raise me about $7k but a sad face would prevail for a long time so I am not sure this is worth it.

Paterson - I admire your ambition!!! I got very close to selling my car when I first started. If possible, i'd plan for some contingencies too - having a buffer is pretty important!
 
I'm pretty sure buying an IP first in WA doesn't disqualify you from getting the grant later on.

Otherwise I'm down with your plan about living in the place for 6 months - its what I did with my first property.

I'm pretty sure you're correct that it doesn't disqualify you from getting the grant. This is from the WA FHOG Fact sheet;

'Each applicant and/or their spouse cannot have previously owned residential property anywhere in Australia on or after 1 July 2000 and occupied that property as a place of residence for a continuous period of at least six months that began on or after 1 July 2004.'

Well I sure hope it doesn't disqualify you anyway as I'm planning on buying a PPOR in WA next year after already owning an investment property.
 
I'm pretty sure you're correct that it doesn't disqualify you from getting the grant. This is from the WA FHOG Fact sheet;

'Each applicant and/or their spouse cannot have previously owned residential property anywhere in Australia on or after 1 July 2000 and occupied that property as a place of residence for a continuous period of at least six months that began on or after 1 July 2004.'

Well I sure hope it doesn't disqualify you anyway as I'm planning on buying a PPOR in WA next year after already owning an investment property.

Not sure if it helps, but id look closely at the stamp duty concession. In my local states, you still get the grant but lose duty concessions.

Ta,
Redom
 
Just re-looking into FHB in WA and it sure looks like you can own an IP prior to FHBG! Unless you owned it prior to 1st July 2000, then you luck out.

Stamp duty is waived as long as your purchase cost is less than $530k.
 
Same in WA - if you buy IP first, no FHOG for you. If you want to take advantage of grants though, you could potentially buy the cheap house first and get the $3000k rather than $10k though, live in it for 6 months then convert to IP and buy PPOR. If you buy sub $400k there are other concessions too to help with purchasing costs.

I don't think this is correct unless the rules have changed over the last few years. Owning an IP did not prevent someone from getting fhog
 
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