first home owner's grant

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From: Caren Temby


Hi everyone

We are looking to buy our first property in the next few months. We were thinking this would be an investment property in Queensland, and that we would continue to rent elswhere. Given the government's extension of their first home owner's grant, would we perhaps be better off to live in this property for the first two years?

Is the 7 or 14 thousnad dollar incentive worth while in the scheme of things?

Secondly, are interest only loans available if it is a home loan rather than an investment loan??

thanks Caren
 
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From: Henry Keys


Hi Caren

Why don't you get an interest only investment loan, live in the property for a month or 2, collect the fhog and move out.
The only reason you need to give is that you are having a little financial trouble and may not be able to maintain the property.

The office of State Revenue issuing the grant in NSW told me that the government doesn't want you to sell the property but rather keep it and rent it out. This your objective isn't it? You only need proof that you actually lived there as your ppor for any amount of time to satisfy the grant, 1 week even will make you eligible. You will not have to provide evidence of your financial problems, if you ever had them in the first place.

I just picked up a nice 14k this way and will only stay 8-10 weeks then rent it out.

Regards

HK
 
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Reply: 1.1
From: Caren Temby


Henry

Im not sure if I understand you correctly.

I was under the impression that i can only get an interest only investment loan for an investment property. Can I get this in place of a persoanl home loan? or would I need to refinance once I started renting the property out?

Caren
 
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Reply: 1.1.1
From: Sergey Golovin


Caren,

Get your self-normal residential loan and convert it into investment one later on in piece, just to keep Government departments (people issuing FHOG) happy.

Good luck.

Serge.
 
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Reply: 1.1.1.1
From: Patrick O Brien


Caren

There are some loan products out there that will allow you to buy an owner occupier with an interest only loan. The obvious example is a line of credit loan. One loan in particular is the Macquarie Mortgage Minimiser loan which has an optional 5 year interest only period.

Patrick
 
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