Reply: 1.1.1.1.1.1.1.1.1.2
From: Sergey Golovin
Dear Glenn,
1. Please read the archives. That is why they are there for.
Hips of it (FHOG & alike) were written down and discussed already.
We understand you are hot, confused and in hurry to start. Do not worry grant has not been cut off as yet (31 December, they say).
Cut it shot -
2. Investment Property as well as Investment Loan and Grant do not mix.
You will not get the grant from the Government.
Investment - No grant. Personal - Yes grant.
You simply need owner occupy to start with if you want to live there. You can switch them over to Investment at no cost at all, when you are ready.
And vice versa. If you want investment first you have to wait till you actually move in your self and occupy that place.
“Investment Loan” first and transfer it into “Owner Occupy” at no cost at all, yes can be done.
But you have to occupy that place within 12 month. That's all. Other wise you will not get the GRANT.
To keep it simple word Investment for the Government and ATO in particular means - Investment, funny enough.
3. You can have “Interest Only” or “Principle & Interest Loan”- no problem.
Government does not care what is your arrangement with the bank. They are not in the business to provide the finance. They only provide the GRANT!
Grant means help (temporary relive) - that's all.
4. Now, on the question of the Deposit:
Same banks as well building companies (No deposit and no legals...) they do incorporate that grant into the deposit (kind of deposit) for you. They will claim that grant on your behalf. You won't even see that money. All you have to do is to sign the bloody papers.
That question was answered just three days ago! Did you read it?...
Wait there is more -
http://www.revenue.act.gov.au/FHOG/faqs.html
Read it carefully and I hope, I really do hope, it will help.
Serge.