First Home Saver Account - Question

G'day All,

I'm presently considering opening a First Home Saver Account as it seems to align well with the timeline in which I wish to purchase my first PPOR and after reading a few discussions on it seems fairly beneficial. I'll run a separate savings account in parallel to this one, as I'm fortunately able to save more than 6k/year.

At the moment I want to keep the account open for the minimum time period possible (2 years, 2 days) whilst maximising my benefit. I'm unsure as to what would happen with the Government co-contribution/bonus in the final year however?

Hypothetical scenario below - As I want it to run.

June 30th, 2014 - Open account, Deposit $6k (2013-2014 FY)
June 30th, 2015 - Deposit 6k (2014-2015 FY)
June 30th, 2016 - Deposit 6k (2015-2016 FY)
July 1st, 2016 - Deposit 6k (2016-2017 FY)
July 2nd, 2016 - Find Dream PPOR, make offer 50k under fair market price, have it accepted, Nigella Lawsons asks me on a date (Imagination may be getting carried away here, but we are speaking in hypotheticals after all)

Assuming I manage to buy a house on July 2nd, thus withdraw the money from the account. Will I receive a government bonus for the 6k that I deposited in that financial year? If I do receive it, I presume it will just be rolled over in to my super? Or do I forfeit this bonus when I withdraw the money?
 
not sure, but I reckon you should buy an investment property instead. Bought well, the rental, negative gearing benifits and capital growth will be much better than the first home saver account.
 
not sure, but I reckon you should buy an investment property instead. Bought well, the rental, negative gearing benifits and capital growth will be much better than the first home saver account.

Thanks for the reply. The purchasing of a PPOR isn't really negotiable however. By that stage (mid 2016) I'll be just cracking 27 years of age and it will be half my luck that my mum hasn't kicked me out before then. Add on top of that the chance to reduce commute times by moving to a more central location and this all points to a PPOR coming before my first IP.
 
Have you thought of a Family Guarantee (assuming parents are in the position to do so) and pay your parents back over the next two years whilst living in your PPOR?
 
Have you thought of a Family Guarantee (assuming parents are in the position to do so) and pay your parents back over the next two years whilst living in your PPOR?

Family Guarantee in the sense that their house forms part of the security for my mortgage? I have relatives that are willing and able to do it, however it's their PPOR and I'm not 100% certain I'm comfortable with the idea of their house being tied to mine. Seems to be very high stakes, and whilst I'm confident in my ability to meet repayments/employed, I still don't have a crystal ball which will say with 100% certainty that there will be no other factors out of my control...
 
Have you thought of a Family Guarantee (assuming parents are in the position to do so) and pay your parents back over the next two years whilst living in your PPOR?

Or one better, for an IP, allowing rent to cover majority of the mortgage, enabling near double payments with your contribution. With potential upswing in vals, you can remove the guarantee within 12 months.

Family Guarantee's cover 20% of the value of the property purchase. You can exit out of the FG at 90% if you wish, and pay the liable LMI.

I've recently structured one like this - the client has let me know last week that they will be in the position to remove guarantee by the start of '14. A good result.
 
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