Finally Brought A House!!!

MCS_80

MCS_80

Hi to all,

I haven’t been here for a little while, but I return with good news finally. :D

My partner and I just brought a house together (Her first my second) and we are so happy about it. We also found out about 9 weeks ago that my partner is pregnant so that’s added to the great news this year !!! (Weddings on the way this year also!!!)

My question to share with you is this.

The house has been put into my partners name only, to take advantage of the first home owners grant as I have owned property in a previous relationship, and we wanted to find out if we are better off leaving it in my partners name only or adding my name to the title in the required 12 months after settlement?

Here is our situation.

We both work full time (4 x 10hr days per week)

In June my partner will give up full time work to have our baby and obtain the baby bonus installments and also start a small at home business.

I will continue working fulltime and also have very small photography business starting up.

The house is valued at $210,000 by the lending bank and we paid $158,000 for it.

Should we put the house in both our names or just my partners? We want to invest in residential property ASAP and are just after opinions and ideas.

Any and all questions welcome.:D:D:D

Cheers

Mick
 
Last edited:
Mick,

Well done mate.

Considering that your partner will stop working I think you shouldn't rush and buy IP's yet.

You can put the propery in her name.
I don't know how flexible your lender is but accessing the equity
and buying IP's with it shouldn't be hard.

Are you getting a standard loan or one with an offset account or a LOC?

cheers
 
Hi, how fantastic that you made a move based on your own situation. A logical thing to do seems to have the IP in your name then each of you own one house. Do please do due diligence on the numbers eg how much rent vs how much mortgage repayments [& don't forget to put in a few weeks of vacancy, rates, insurance, maintenance, mgt fees etc]

Good luck & as others have said, enjoy the journey. Many of us have & continue to find fulfilment in property investment.

KY
 
Congrats MCS 80....big year for you both... house, baby and wedding.

Would be interested to hear how you snared such a low purchaese price against the bank val.....diff of some 33 %. That's excellent.

Care to share your negotiating or any value add you did pre-settlement, location ,etc.

Sounds like you going to live in it (at least for now). If its in her name, as a PPOR (assuming this is the intention) she can transfer part ownership to you without CGT and in Vic (as far I am still aware) without stamp duty impost. Just a few hundered dollars of titles fees, I believe.

Maybe play it by ear, for now and as financial earnings become more stable and predictable, seek some specific accounting advice.

I was about to say that there is no rush in this market to invest ASAP as you state, however after a 33 % valuation windfall, I'm all ears as to the strategy you used :)
 
MCS_80 said:
In June my partner will give up full time work to have our baby and obtain the baby bonus installments and also start a small at home business.
Click to expand...

I'd be careful considering you're clearly in a relationship, going to be living in the same property, and having babys and claiming other payments from the government.. lot of cross checking goes on between the government departments. Only for your own benefit.. paying back the FHG could be painful when you obviously will have a lot of other expenses with the baby.

http://www.sro.vic.gov.au/sro/SROWebsite.nsf/rebates_fhog.htm ..

8. Spouse/Partner details

A person is a spouse of another if they are legally married to each other. A person is a partner of another if they are in a domestic relationship regardless of gender.

Whether or not your spouse/partner is an applicant, his or her details must be included on the application form and considered when answering the eligibility questions.[/b]
 
Congratulations on your home, baby and wedding! Busy year for you!

But, as gman says, you need to do some checking around. It sounds like you are on pretty shaky ground as to whether or not you qualify for the grant. And if they decide that you maliciously tried to get around it... well, I am sure they will discover all sorts of ways to squeeze money out of you. Even though you are not yet married, the fact that you live together (I am guessing) and are jointly raising a child (or soon to be raising a child) would make it possible for them to say you are de facto partners. I would suggest emailing the relevant party with your situation. If they tell you its ok and then later decide that it's not ok, at least you can prove that you did not act maliciously. Personally I don't think the short-term gain of getting the grant is worth the risk of all the long-term penalties that come with playing fast and loose with the law.

Others will no more about this than I would, but if your partner gets a fixed rate mortgage, and then you decide later to put your name on it would that mean you are effectively getting a new mortgage? In which case would the bank impose break fees?

Finally, while one hopes this will not be an issue, what would happen if you were to split up a few years down the road and it was only your spouse's name on the house? Of course that is not something one wants to think about but it does happen.
 
Congratulations, Mick! As you know, I'm delighted that things are looking up for you. :)

I hate to sound a downer, but I'm afraid I also have reservations about whether your partner can legitimately claim the FHOG. It may be unfair, but those are the rules, and the various state governments are very, very vigilant about these kinds of situations. It would be awful to have to pay it back. :(

In any case, well done on an excellent negotiation, and much happiness to you both.
 
Fohg

Hi Mick, Congratulations :) Just to let you know though I wasn't able to claim FOHG after living with my then pregnant Partner (Now wife) :) 3 years ago as she had already claimed it when she bought her house.

Andrew
 
You can't claim that grant.

We couldn't claim it last year with the house we bought with any amount of manouvering, despite it being his first house.

Be nice if they gave you half the grant if only one in the couple is a first buyer.
 
sproket said:
Real smart putting your picture up....

*Alt-Prnt Screen*
*File-Print*
*google - 'dob in a cheat "first home owners grant"'

oh heres a good result

http://www.theage.com.au/articles/2006/06/03/1148956587906.html?from=rss

State Revenue eh? Damn, its too late at night to phone them straight away! sheeeesh...:(
Click to expand...

Where does it say that he knows what he was doing was wrong. He seems to think he is entitled to it. With the "helpfull" post on here im sure he will now look further into it. Your post seems to be similar to the posts on that "other" site. Full of critisism but no help. Not suprised really.
 
What the hell is that supposed to mean sprocket? What a ridiculous post. He obviously didn't know he can't claim it and most likely will not claim it now after reading these posts and suggestions.
 
Yep, you won't be able to claim that legally as I understand it. We have a friend who is doing the same thing, very risky IMO. State govts are recouping quite a lot of grant money from people incorrectly claiming it.
 
For what its worth. A friend of mine applied for the grant years back on the advice of his broker. Got the grant no worries. 2 years later he gets a letter. He must pay the full amount back by 30 days plus interest as he was not entitled to it.He was not in trouble as it was an honest mistake but he had to pay it back quick or he would cop a big penalty. True story.
 
Interestingly my friend is doing it on the advice of his broker too. I've told him its not legal, but he says the broker said it was OK, so he's doing it.
 
sproket said:
Real smart putting your picture up....

*Alt-Prnt Screen*
*File-Print*
*google - 'dob in a cheat "first home owners grant"'

oh heres a good result

http://www.theage.com.au/articles/2006/06/03/1148956587906.html?from=rss

State Revenue eh? Damn, its too late at night to phone them straight away! sheeeesh...:(
Click to expand...

Blatant troll from the other site.:rolleyes:

What a shame we can't use lots of profanity and rude emoticons to describe our what we think of your type like happens elsewhere.

What a civilized bunch we are here.
 
manderson said:
Blatant troll from the other site.:rolleyes:

What a shame we can't use lots of profanity and rude emoticons to describe our what we think of your type like happens elsewhere.

What a civilized bunch we are here.
Click to expand...

He will be over there now boasting to the kids how he stirred the pot.:rolleyes:
 
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