45k Grants for H+L vs existing residential

Hi PC Gurus

I live in VIC and have been building a deposit of around 50k to invest in my first property. Until this year I had only been considering purchasing existing residential however I qualify for for a 20k FHOB grant (regional) and the 25k homebuilder grant- 45k is a lot of money on the table and has me thinking about H+L packages as an option.

I am not fixed to a specific location with my work so happy to move within VIC and live in the property for 1 year to qualify for the grants. I have a refundable deposit on a titled block and effictively have the following 2 options:

1. 4BR Double Storey H+L Package on 414m in Armstrong Creek for 500k

Of all the H+L packages in my price range this is the most appealing. I feel with the future infrastructure, growth of Geelong, location proximity to Melbourne and the Great Ocean Road the Armstrong Creek region has the potential for future growth in the future

2. Existing Residential elsewhere with budget of up to 455k (45k less due to no grants)

I know the general consensus is to buy existing and renovate to manufacture equity and CG. I am also aware new estates are less likely to have rapid CG and high rental yields due to oversupply.

My main goal for my first property is capital growth, after full filling 1 year in it as PPOR to satisfy requirements for the grants it will likely become an IP, likely negatively geared initially.

Keen for any thoughts or insights, I'm a bit stuck between the 2 options!

 

The Home-builder grant is paid after the slab is down, so not able to be used as a deposit etc.

Not familiar with the area, so can't advise which way.

I'd argue that;
~ 45k would be a good sum to slap in your offset and save yourself interest whilst you are living there.
~ The 45k can then be used to fund a deposit for your next property
~ Minimal deposit needed for H&L, as opposed to 10-20% for existing.
~ Will need growth to access equity for deposits with existing property

Regards,

 

Thanks for the thoughts, definitely tempted by the cash on offer.

Hadn't considered putting the grant money into the offset, I hadn't considered that.