Hope that you do know that if you used the FHBG to purchase this property, that you eventually have to move into it for a period of time no later than 12mths from purchase (then move out later). You can't just use the FHBG to purchase IP, and not move in.
Yes i know this and factored this scenario into my calcs. I purchased the property vacant possession (i am already living there) and intend on renting it out after the 6 months is up. I said in my post i can get a good yield based on the rents the previous and neighbouring tenants are paying (pretty reasonable assumption, i think). Having a 6 month vacancy on an IP, recieving $14,000 in grants and avoiding $17,000 in stamp duty is still more beneficial on your total return than if i did nt purchase using the FHBG grant an consequently leased it out from day 1. You don't need a calculator for that, no matter what level of gearing you have.
I think my whole general thinking was that well my deposit is $25,000 based on a 95% LVR. But if i deduct the $14k grant and not pay stamp duty, i'm only really putting in about $11k in equity. But still enjoy the equity position of $25k. It basically means i have less to lose, but more to gain. It certainly an unfair bargaining position that FHB's have against an investor.