Here goes, seeing as im 100% new to this please dont bash me for for what im going to ask because i want to ask dumb questions rather than make a dumb mistake.
Here goes…
1: I hear on TV about now we can get $12,000 first home owners grant, can i use this to buy a investment home or not?
2: Is it true or flase that you need 10% deposit on a house you want to buy? Because my mate brought his first home with only $3000 and the house $220,000. The reason for asking this is because he new the people who were selling.
3: What bank or company would you guys recomend for someone like me to talk to, and get me going in the right direction?Thanks in advanced
Damian.A guy on his horse rides into town on friday, three days later he leaves on friday, how can that be?
MrVip… Trust me – I know what it feels like to ask what you think is a really dumb question, but the only silly questions are the ones you don’t ask!
I don’t know about the exact amount of fhog you are entitled to but I’m pretty sure you can use it for an ip… if I’m wrong I’m sure the gurus will correct me on that one.
NO – you don’t have to put a 10% deposit down. You can put as little as you want.
Rather than approaching a bank directly, I would recommend you speak to a mortgage broker about your finances. There are a few good ones on this very forum.
Good luck with it all!
Hi Damian
Well done! You’ve asked the questions. Remember that there is no such thing as a dumb question.
I’m quite new to all this too, I’ll try my best to help.
1. I don’t know about the amount of FHOG (first home owners grant) you can get, I’m under the impression that its $7000 countrywide & an extra $5000 in VIC.
You can use the grant to buy an IP (investment property) PROVIDED THAT: You begin living in the property within one year of the purchase date AND you must live in it for 6 months. E.G. Buy it, rent it out for 364 days, live in it for 183 days & then rent it out again.
2. You can usually put down any deposit you like BUT there are pros & cons. Less deposit means more cash available for more deposits but you may then be required to buy mortgage insurance.
More deposit means less cash for other deposits but less to pay off on your IP.
3. Talk to several brokers first, see what they have to say. It may cost you, it may not. Until you get more experience, a broker is the way to go.Regards
Patrick
Hi Damian,
Good questions and I think you got some good advice. The answer to your last question is the horse is called Friday [biggrin]
Cheers,
Sue“Be careful not to step on the flowers when you’re reaching for the stars”
The FHOG is for buying a home. You can use the home for 6 months starting within the first 12 months of ownership to qualify for the grant.
The deposit you can use varies to as little as 3%. A 20% depositis the best amount to use but with extra costs it can be reduced substantially.
I would strongly recommend you use a broker. Find one that you can trust – referrals from other people are invaluable in this industry.
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks for all the info guys it really helped me out heaps and you were all so nice about it
but……….
i got a letter saying im no longer needed at my job, as well as 10 other people life cant get worse eh. Anyways i’ll get back to you guys when im working again, lets hope next week A guy on his horse rides into town on friday, three days later he leaves on friday, how can that be?
Damian,
Hopefully your job was permanent, and that you can get a redundancy payout- those $$$$k’s will assist in you getting an IP. The problem, if you are no longer employed, is that your serviceability will be affected. If you get a job next week, as you hope, you will have a new job, and your payout- what could be better :o)) Check with your local union as to your entitlements (hope you’re a member!)
I always put down a 10% deposit. My bank is old-fashioned that way, and so am I. If I renege on a deal, I want the vendor to be safe, and the vendor is entitled to my money if I stuff them around. Also, I want to keep an 80% LVR, so I can build equity, and not build debt. I think 100% (or more) loans are only good for a rising market, and this really ain’t one.
kay henry
I got a job today!!! i went for the interveiw after i sent my resume off to a dozen places yesterday and they rang me up today to start work tomorrow! its only a casual job for now untill i find a full time job witch im looking for.
A guy on his horse rides into town on friday, three days later he leaves on friday, how can that be?
but……….
life cant get worse eh. Anyways i’ll get back to you guys when im working again, lets hope next week 
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