First home buyer property dilemma

[newkappa]

Hi all,

I was wondering your thoughts on my pending property purchasing dilemma.

My husband and I are eligible for the FHOG in VIC if we buy a newly constructed residence. My query is - can I buy (for example) an 'off the plans' new construction (which may taken another 12 months until full payment is required) with the intent to live in the residence for 12 months post completion and in the meantime buy a second property (established) to live in (which is not eligible for grants or stamp duty savings). Or is it expected to rent until the new construction is complete?

The main reason we are looking at buying a new construction is for the 15-20K of benefits we get out of it. We want to have an investment property within 2 years so we though hey lets buy a new place. Problem is there aren't a lot of new constructions in Melb to purchase that are already available, most seem 'off the plan'. Perhaps we would just be better to forgo the savings and get a good piece of real estate?!

Thanks for reading

 

[D.T.]

No
Qualify for FHOG at settlement

 

[Paul@PFI]

The strategy may be to acquire the OTP in own names and the other in a trust with a company trustee. That way you both personally satisfy the requirement as first home buyers when the OTP completes. Your intent is to rent the "home" once the OTP is completed ??

Using a company as trustee as owner has been a strategy to retain FHOG in most states for years whilst still accessing property as an investment. The only catch is no main residence exemption for CGT on the period you live in the trust property. In Vic there is a land tax concession

Legal advice is a must.