Gday guys, Im 23 still living with my parents, have purchased a villa 5 years ago as investment. My partner & I have been with my partner for almost 2 years, We wish to move out and purchase another villa. I dont mind living in a villa rather than a larger house.
MY QUESTION:
For investment would it be wise to purchase the 2nd villa and live in and still lease out the first one for investment. will this still work out okay if i wish to move out into a larger property in another ten years, assuming property goes up again after the slump?
I was also thinking of selling the current villa and moving into a larger house with my partner but i would sell at loss due to fees and the housing value slump.
Although not legal I was also thinking of getting my partner to apply for the FHOG which will give us another $14K towards anothe house/villa.
what would you do?
Hi. My 22 year old son is in the same position as you, and has just purchased an apartment to live in. He has chosen to keep his Investment, as falling rates are making it neutrally geared. You are STILL ELIGIBLE ffor the FIRST HOME GRANT!! Check the web site. It states that you must not have held an interest in a residential property prior to 2000, or lived in a residential property owned by you for more than 6 months continually – so – if you havent lived in your investment, you get the grant!! My son has!! If you move into your currently held property, you wont be eligible for the grant, so best not to do that. I would buy, get the grant, move in, and if you want, you can rent it out after you have lived in it for a 6 month period, and still get to keep the grant. Its totally up to you and your current fianancial situation whether or not you choose to hold your investment…..only you can decide what debt level you are comfortable with. Hope this has been of some help!
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