QLD Brisbane - advice required

I am moving to Brisbane and thinking about buying a PPOR that will eventually (in about 1 year) become an investment property. I have 25K and I am eligible for the 20K FHOG, so with a 10% deposit my budget is around 400K. Obviously it needs to be a brand new property.

I already have a dual key investment property, so the next step is to invest into a property with CG potential - it does not have to be cashflow positive.

Where in Brisbane and what kind of property would you recommend for me to invest in? I work remotely so location is flexible (within a 100km radius of Brisbane). One additional requirement - the property must be built and ready to move in within a month or 2.

 

How would you be eligible for FHOG if you already have a property?

 

Looks like FHOG and First Home Stamp duty concession will be an issue for you.

 

Some states ( such as WA ) will still give you fhog/stamp duty concession if you already own a property as long as you never lived in it, I am not sure where QLD stands on this matter however

 

As mentioned, you will not be eligible for the FHOG or first home concession for transfer duty based on you owning an investment property already. This is likely to make getting a loan difficult given your deposit.

 

I believe in QLD owning a residential IP (which you have never occupied yourself) does not disqualify you from the FHOG, I've just double checked that using the official eligibility check - https://firsthomeowners.initiatives.qld.gov.au/eligibility.php

Yes I will not qualify for the First Home Stamp duty concession as I've owned properties overseas - but that is allowed for in my budget.

 

Just found a definitive confirmation that owning an IP in QLD does not make you ineligible for the FHOG:

If you have owned an interest in residential property since 1 July 2000 that has been solely used for investment purposes, you may be eligible for the grant on a subsequent property.​

(from Applying for a first home owner grant | Homes and housing | Queensland Government)

 

100km radius is pretty big and gives a few options. I havent been looking at new build areas but $ wise you could look towards Springfield lakes or out Ipswich way. Not a pro but I would suggest close to public transport back to Bris. Regarding fhog prob best to speak to your broker, may still qualify for a lvr loan even without FHOG. Stay away from Woodridge if you see anything there

 

It amazes me that people (particularly most property professionals!) aren't aware that you are still eligible for the FHOG if you already own an IP provided you haven't claimed it before.

You can absolutely claim the FHOG if the only previous property/properties you have bought have been IPs exclusively.

 

Welcome Alex. Maybe think about proximity to the airport if you are a FIFO worker? Outer Northside or east close to gateway motorway.

 

@JezandCrissy, thanks for the tips - I have been looking in Ipswich - there are indeed some nice looking brand new houses that are within my budget. But what's wrong with Woodridge? I am very new to Brisbane, so I was looking there - obviously because of the lower prices, but also due to the fact that house prices and rents immediately to the North (Kuraby, Underwood) are much higher - so in theory this should drive prices up in the next 5-10years?

@Andrew Hancock yes I was surprised too - especially because it only takes a 5 minute google search to confirm.

@Heinz57 no I work remotely as in "from my home office" - so I don't fly too often.

@all So far I've found interesting options in Ipswich, Caboulture & Narangba - all freehold houses. However I have also seen body corporate townhouses and units in Durack and Kingston, like these 2:
22/558 Blunder Rd Durack Qld 4077 - Townhouse for Sale #123645050 - realestate.com.au
THIS COULD BE YOUR FIRST HOME!!

Out of these options, which ones would you say have a higher potential for capital growth in the next 5 years?

 

The one in blunder rd ,it may pay to check with the flood maps,the link below will give you an idea what can happen..imho..
http://www.abc.net.au/news/specials/qld-floods/

 

@willair thanks for the tip - the Blunder rd one is indeed in the 5% annual chance of flooding zone, so out of the question

 

It does still appear to exclude established properties however

 

I believe WA might be the only state you can have an IP and then get FHOG and/or first home owner rate of duty on established homes? About the First Home Owner Grant
Happy to be learn otherwise.

As for the OP... would it be wise to get a new property just to get the FHOG? Maybe the benefits of an established one in a better suburb with higher unimproved land value may outweigh the benefits of the grant in QLD?

 

@Jamesaurus no in QLD you can still get FHOG - see my comment above with a link to QLD's gov site.

As to the FHOG itself, I do not have enough $$ saved not to use it, plus this will eventually be an IP so with a new home there will be substantial depreciation benefits.

 

Owning properties overseas counts too?

 

@virhlpool Overseas properties don't count for FHOG, but do count for the first home stamp duty concession

 

attached is the response from the eligibility check i got..