First Property

Hi All

I came to Australia in Dec 2014, have worked hard ever since and now in the process of building my first house which most probably will be an IP, I have a few questions and hope you all can advise:

1. If I don't want to live in this house I can't claim FHOG, however will I still be eligible for reduced stamp duty being the first house?

2. I purchased 476sqm in Cloverton which is being advertised as the largest estate in Victoria with 8 schools, University and a Hospital, with Donnybrook train station 2 minutes drive, am I good to build there or shall I try my luck elsewhere?

3. Initially I wanted to build a 29sq house as a PPOR, but the plan is changed am I better off building a smaller house and try to keep it under 460K, and still expect CG?

4. The broker wants me to build with one of his recommended builders, as he is of the view that I will save money, but I don't believe that, shall I find a builder myself?

5. How soon after the build will I be able to claim Equity to buy another IP?

Anyother suggestions will be greatly appreciated?

 

Is there any conflict of interest? Suggest you do independent research, and not just sign up.

In terms of extracting equity - will depend on the end value of the house vs the loan amount, your serviceability and other factors.

 

Hi Ms Ali

The contract price for land is 209K, the estate is currently selling similar sized lots for 290K, the first house buying/building is proving overwhelming, anyways thanks for the heads up will try to investigate and see how it goes.

 

Sounds like you have done well with this purchase, and may have equity available. You will also need to take into account build costs, and end value following that - because the house will be compared to other houses with similar finishes.

I understand building can get overwhelming. Having been through the process ourselves, make sure you review the plans and paperwork multiple times and each time the builder updates them.

All the best!

 

1. No, unfortunately you won't be eligible for a stamp duty reduction as a first home owner (Duty reduction for first-home buyers | State Revenue Office).

2 & 3. Grab out your crystal ball and look into the future But seriously, it's very difficult to tell what will be the 'best' option between two or more potential property investments. You can run some numbers and take to experts, but at the end of the day, the future is unpredictable.

4. I would have a chat to the builder your broker is recommending, but also talk to other builders. It sounds like your broker is pushing this builder pretty hard, I would definitely ask if they are getting a kick back ($$$$$).

5. Depending on what happens with property prices it could be on the day certificate of occupancy is issued or in 20+ years in the future!

 

Have a draftsperson draw up a design, you can take that to the recommended builder and plenty others to quote. The broker is most definitely getting a finders fee, probably in the vicinity of 1%.