VIC FHB living in Melbourne for the next 2 years. Should we buy in Perth?

Hi everyone,

I’m new to posting in the forum but have read many threads before. Thank you in advance for any insight and suggestions.

Im looking to buy a property with a 600k budget and hoping to live in Perth in 2 years. I’m currently living in Melbourne for the next 2 years as part of my commitment to the VIC state who sponsored my residency over here.

Is it silly to consider buying in Perth now, with the assistance of a BA to afford the property I can see myself living in long term and rent it out for 2 years until I can move over?

OR

Buy somewhere in VIC as a FHB and make the most out of available stamp duty savings, with the intention of renting it out when I move to Perth?

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In VIC, there is no stamp duty on properties upto 600k but there is nothing in that budget available, without moving quite far out (I work in the city) or increasing the budget to around 800k.

In WA, I would have to pay approx $22k stamp duty on the property + approx $15k on BA. But would comfortably be able to afford a ‘dream’ long term home.


Really open to any advice on my situation.

thank you!

 

Welcome to the forums.

I think the answer probably turns on why you want to buy a property at the moment. The two scenarios have very different outcomes after the two years.

How sure are you that you will be back in Perth in two years? And what would be the issue in just buying in Perth when you get back?

 

That’s a great question!

We’re eager to purchase a house as soon as possible. It’s been our goal for many years now and we have our deposit good to go, we’re also pre-approved. We’re certain we will move to Perth in 2 years for the better work life balance.

 

I’m bullish on Perth market. Those mining dollars gotta spill over somewhere...

 

If it was me and Perth was a sure thing, then I'd be buying in Perth. But a lot can change in 2 years.

Have you spent a good amount of time in Perth yourself?

I would also spend some $ to fly over to Perth and shop for myself rather than paying a BA (particularly if it was to be my long term dream home).

 

Is there a third option? 3. buy an IP in Perth for less than $600k in a good area that is primed for growth then use the equity in that to purchase a PPOR in Perth when you come? You'd still be eligible to use FHOG grants/rebates on the future purchase then

You can continue to save for future PPOR deposit whilst you're renting in Melbourne in a place that will be presumably closer to work and suits your current needs - ie might be an apartment etc.

This gives you the flexibility of being exposed to Perth growth but allows you to determine what/where you want to live when you actually move here

 

This would be my vote if you are confident of getting a good IP.

 

This is a great fresh perspective, thanks for sharing! My only concern with this option... would we technically be able to claim any benefits as FHB if it would be our second house we are purchasing in a few years time? (even if it is an IP?)

 

In WA (at least, not sure for other states) as long as you don't live in it or claim it as your PPOR then you are allowed to buy as many IPs as you want then claim the First Home Buyer stuff on your PPOR purchase. The rules do change from time to time but it's been this way for quite awhile now

Grant info here First home owner grant (FHOG)
Stamp Duty rebate here Duties Fact Sheet - First Home Owner Rate

 

I like this option, but the OP would need to be comfortable that they can afford to buy the dream home and hold onto the IP in a couple of years.