VIC First time home-buyer- take the stamp duty concession or no?

Discussion in 'Where to Buy' started by Jimmy_05, 9th Oct, 2017.

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  1. Jimmy_05

    Jimmy_05 Active Member

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    Hey guys,

    So the Melbourne market is insane right now. I am looking to buy a property mainly for CG and am stuck deciding if I should take advantage of the first time homeowner stamp duty exemption to buy a PPOR in an established neighborhood in the South East (where I want to live) or just say screw it and rent, while I get an IP with great potential and positive cash flow somewhere else.

    Ideally would love to find a PPOR that has good CG potential but I am having a hard time finding that in the South East.

    Would appreciate your input.
     
    Jimmy_05, 9th Oct, 2017
    #1
  2. Property God

    Property God Active Member

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    If the CG from your IP is over 30k better than the CG on your PPoR than get the IP and rent. If not, get the PPoR.
     
    Property God, 9th Oct, 2017
    #2
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  3. mikey7

    mikey7 Well-Known Member

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    Why 30k?
     
    mikey7, 9th Oct, 2017
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  4. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    If you think you can attain a PPOR that will realise some relatively short term CGs as opposed to buying an IP outside of Melbourne (Im assuming) then go the IP route and extract equity once you have some for future acquisitions.
     
    Colin Rice, 9th Oct, 2017
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  5. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Get the best of both worlds - buy as PPOR, get stamp duty exemptions, then move out after the required time and turn into an IP.
     
    Jess Peletier, 9th Oct, 2017
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  6. wa2

    wa2 Member

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    Look at the Monash freeway upgrade and identify which suburb will benefit. Agree with Jess to get ppor and convert to IP.
    IMO, I wouldn’t leave any money offer by the government on the table against some wishful speculation. All the best..
     
    wa2, 9th Oct, 2017
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  7. Property God

    Property God Active Member

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    Because the first home owner stamp duty concession is is 30k on a 600k property. So thats the max benefit.
     
    Property God, 9th Oct, 2017
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  8. craigc

    craigc Well-Known Member

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    What Jess said plus you also get PPOR I/R's instead of IP I/R's as well!
     
    craigc, 9th Oct, 2017
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  9. rjw180

    rjw180 Well-Known Member

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    But wait. There's more, you also get a set of steak knives. Well maybe not steak knives, but you can also use the 6 year rule to pay less capital gains tax when you sell (assuming you don't buy another PPOR)
     
    rjw180, 10th Oct, 2017
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  10. Jimmy_05

    Jimmy_05 Active Member

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    Thanks guys. I also learned last night at the meetup that just because I have an IP, it doesn't mean I can't get a PPOR down the road and still be eligible for stamp exemption and FHOG-

    "
    Your new home can be a house, townhouse, apartment, unit or similar, but it must be valued at $750,000 or less and be the first sale of the property as a residential premises. You’re not eligible for the FHOG if you or your spouse/partner have already:

    • Received the FHOG in Australia,
    • Owned a home or other residential property in Australia, either jointly or separately, prior to 1 July 2000,
    • Lived in a home in Australia which either of you owned or part-owned on or after 1 July 2000, for a continuous period of at least six months
    These criteria apply even if your spouse/partner is not an applicant with you for the FHOG.

    You may still be eligible for the FHOG if you or your spouse/partner purchased property on or after 1 July 2000 and have not lived there as your home."
     
    Jimmy_05, 11th Oct, 2017
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  11. Jimmy_05

    Jimmy_05 Active Member

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    Jimmy_05, 11th Oct, 2017
    #11
  12. Property God

    Property God Active Member

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    Property God, 12th Oct, 2017
    #12
  13. Jimmy_05

    Jimmy_05 Active Member

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    @Property God What is your rationale for that one?

    My strategy with 20 william clarke is this- average price for narre warren 4 bd/ 2 bath is in the low 600. This bad boy is missing a bathroom. Add a bathroom and bam! What do you think?
     
    Jimmy_05, 12th Oct, 2017
    #13
  14. Jimmy_05

    Jimmy_05 Active Member

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    @The Y-man @Lions4Eva What do you think?
     
    Jimmy_05, 12th Oct, 2017
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  15. The Y-man

    The Y-man Moderator Staff Member

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    Ross st - near the Hospital, closer to Melbourne CBD (inside the 30km radius).

    Feng Shui wrong though (slopes to back).

    The Y-man
     
    The Y-man, 12th Oct, 2017
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  16. Lions4Eva

    Lions4Eva Well-Known Member

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    As the y man said - Ross Street is near the hospital will be great, you can do no wrong with that property
     
    Lions4Eva, 13th Oct, 2017
    #16