If I purchased an investment property as my first home can I still get the first home buyers grant?

Hi Jade

Short answer is no. Please also note that that the grant is only paid to those building or purchasing a new property that has never been lived in before.

Hi Jade,

No. You can't. You need to live in it as your principle residence first.

I would also encourage looking at using the new first home super saver scheme to boost your deposit. Get in touch with me glenn@precisionwm.com.au or 1300200012 if you want any details or help on it. I'm helping heaps of first home buyers maximise the scheme at the moment.

Cheers
Glenn

Hi Jade, the question of whether or not investing in property is a "good" idea or not is very difficult to get a straight answer on.

Maybe your question should be along the lines of "what can I do to plan for a reasonable quality of life throughout my working life AND also ensure that I am able to maintain a decent quality of life in my retirement"

which takes into account SOOOOOO much more than whether or not to rip into an investment property in the hottest real estate market in the country.

What you need is a "master plan" so that you can align all the things you do with this master plan. For example, it is not tax effective for a retiree with no assessable income to look at a negatively geared investment to get a tax advantage. OR its often impractical for a young person to make large salary sacrifice contributions into super when they really want to purchase or pay off their home.

You also need to consider risk: what happens if you cant work? what happens if your house burns down? What happens to your family if you get skittled by a bus? Lots of things.....

Moral of the story is get yourself in front of a good adviser who can help you to formulate this master plan. it probably wont be cheap, so ask these people FIRST what the costs are, and if they say they wont charge you a cracker, then run a mile!! If you are not paying up front, you WILL be paying behind the line because your advisor will be looking for something that provides him/her with the best commission

good luck
bc

Hi Jade

If you can afford to service the loan then it would be a good idea to consider purchasing in the short term. Whilst there is talk of a downturn in property values; this may only be short lived.

Fell free to call me on 1800 824 325 if you want to chat further.

Regards

Sam

Hi Jade,

The OSR says that you need to live in the property for a period of 6 months within the first year of purchasing it. As such, technically you could rent it out for 11 months, move in on the 12 months, stay 6 months and then rent it out again.

However, you can't get around the fact that at some stage you need to move into the property in order to get the grant.

If you want to chat about things a bit further, feel free to get in touch.

Kind regards,

Tim Russell
0400 530 868
tim@multipartfinance.com.au