What should I do with my $250,000

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RoyceRolls
Member
@roycerolls
Join Date: 2013
Post Count: 6
February 13, 2013 - 7:22 am
Thanks ClaireR,
I asked my broker multiple times to confirm it was only 6 months I had to live in the house to get FHBG and he assured me it was.
Thats good to know
ClaireR
Participant
@clairer
Join Date: 2013
Post Count: 16
February 13, 2013 - 7:33 am
I should add it may depend what state you buy in, we bought in QLD. A quick google and look at the Office of State Revenue gov web site will confirm you have to live in it for 1 year not 6 months. May be different in other states.
On a positive note the pro rate pay back amount if you leave before the year is up is tax deductible…
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
February 13, 2013 - 7:42 am
RoyceRolls wrote:
Thanks ClaireR,
I asked my broker multiple times to confirm it was only 6 months I had to live in the house to get FHBG and he assured me it was.
Thats good to know
Brokers cannot give legal advice!
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
February 13, 2013 - 7:48 am
ClaireR wrote:
Quick note if you do buy a PPOR (although note the best option by the sounds of it) you have to live in the place for 12 months – 6 months for the first home buyers grant yes but if you leave before the 12 months you have to pay back the government the stamp duty concession pro rata. Learnt the hard way over a year ago and our mortgage broker and financial planner never brought it to our attention.
This is a legal issue not something that a mortgage broker or a fin planner would generally advise on.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
wilko1
Participant
@wilko1
Join Date: 2010
Post Count: 510
February 19, 2013 - 1:37 pm
Do what terry said in first post.
But buy a corner house after letter box dropping the entire suburbs corner houses.
Get the FHOG
Live in home for the first 6 months with a gentleman agreement that your mates can live there as well if they buy you all your food and beer.
Rent 2 of the bedrooms to your mates with a gentleman agreement that the 3rd bed remains free at all times (In case you just happen to be in the area every month and want to hang out for a week or so)
Subdivide the land off the back or use your large income to build another home.
Depreciation schedule should cover the majority of any positive cashflow that you would receive from this home for first 5 years.