Advice for first home buying duo, structure, tax

Hi

Two of my younger male cousins just inherited money from the sale of a dead relatives home.

They are 20 and 22 and were scared they'd blow it all on stuff 20 and 22 year olds Aussies from the Frankston area would waste money on. One works at woolies and is about to join the army because he hated uni. The other works as a removalist. They get along very well. They have minimal savings and besides their cars they don't have any real assets or shares.

They wanted to buy quickly before the money was sitting in a bank account for them to access and spend.

They just purchased an already existing/not off the plan in cash in the outer South East of Melbourne for $450k, 1 month settlement. Older fully renovated house in Frankston North which is close to where they already live anyway. They are happy to move into the house at first to claim it as primary place of residence before moving out and renting it.

My questions are:

1. Can they get anything from the first home buyer grant and how do they apply?

2. Both their names will be on the house. What is the best structure if they are to receive the first home buyer grant and best for tax if they sell further down the track?

3. They aim to make it primary place and move out after 6 months. Is there anything else that they'll need to do to keep the first home buyer grant or make it tax effective?

4. Any other advice that i could pass onto them?

Thanks in advance.

 

1. If they meet the requirements
2. They should have considered structure before entering contracts, but if it VIC they have options to consider.
Best structure for income tax is a discretionary trust, but this may not be the best structure for this particular property.
3. they could have borrowed 100% to buy it.
4. they should get specific legal advice.

 

The main residence exemption may be difficult to access if he joins the army before buying. And a disc trust or other structure wont access first home buyer concessions OR the main residence exemption.

I would invest in some legal advice. Co owning with family can get messy. You could even each be jointly and severally liable. What happens if one dies etc.