Baby Investor

Hi Caeryla,

I am also a Uni student who is starting a property portfolio.

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I’ve heard of the First Home Buyer’s Grant, but would that apply to non-residential properties such as a vacant block?

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The FHOG only applies to owner-occupiers. I have done a lot of research here and found the system to be quite unfair in that, if you go on the title of an investment property before you go on the title of your PPOR, you no longer qualify for the FHOG. Of course the best way to go about this is to not go on the title of the property via either your parents or a company/trust structure.

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Has anyone some tips?

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My advice, if you do not have the income (servicability) or savings (security) to get a loan yourself would be to set up some kind of investing partnership with your parents. This is what I’m doing – with dad as money partner and me as time partner. The income is split through a discretionary family trust. We have also decided that the best place to start is wraps because it requires low money down, has high returns and thus allows us to purchase multiple properties.

Feel free to email me at [email protected].

Cheers
-Nick

To add to what David has said, the First Home Owner’s Scheme website at http://www.firsthome.gov.au/ states:

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An eligible home must be occupied by the applicant(s) as their principal place of residence within 12 months of completion of construction or settlement of the home

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-Nick

Also just a note on the FHOG you are not eligble for this if you purchase a property with someone else on the title (ie JV or Tenants in Common)