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House & land VIC

Discussion in 'General Property Chat' started by Property Hippies, 15th Aug, 2016.

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  1. Property Hippies

    Property Hippies Member

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    26th Oct, 2015
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    Melbourne
    Hi Guys,
    My partner and I are looking to buy our 3rd IP and we are wondering if going down the h&l package road is a good investment? I have previously had the first home buyers grant but she hasn't, would we be able to purchase under her name or is it not worth going down that track? We are looking at SE Melbourne, Geelong, Torquay.
    Any help would be awesome!!
     
  2. Simon Moore

    Simon Moore Mortgage Broker - Melbourne Business Member

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    Melbourne
    Hi,

    This is from First Home Owner | State Revenue Office. Unfortunately you may be out of luck with getting the FHOG again :(

    'You’re not eligible for the FHOG if you or your spouse/partner have already:

    • Received the FHOG in Australia,
    • Owned a home in Australia, either jointly or separately, prior to 1 July 2000,
    • Lived in a home in Australia in 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.'

    I'm personally not a huge fan of house and land, they are normally located in areas where there is a large supply of land, this excess supply can be used to meet increased demand and as a result, the value of the land does not appreciate in the short term.
    As we know buildings depreciate and land appreciates. I prefer to buy in a location where supply is reasonably constrained.
     
    Shahin_Afarin likes this.
  3. Property Hippies

    Property Hippies Member

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    Hey Simon,
    Thanks for the advice! I was also thinking established was the better option but we wanted to explore all the possibilities before jumping into our next one.
     
  4. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Sydney
    Although I agree with what Simon is saying - if you can find land (they do exist) in metro areas they will be fantastic for FHOG buyers. The grants really go a long way in assisting the cashflow side of things plus you using a lower deposit base which in turn allows you for the accumulation of subsequent properties quicker.
     
    Simon Moore likes this.
  5. Property Hippies

    Property Hippies Member

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    Thanks Shahin! The quicker we can buy more the happier we will be We have a one track mind at the moment to buy properties so all the advice we can get on our options is so helpful!
     
  6. Simon Moore

    Simon Moore Mortgage Broker - Melbourne Business Member

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    Have you had your existing properties valued recently to see if there is an equity available you could use for the next purchase?
     
  7. Property Hippies

    Property Hippies Member

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    Our properties were purchased less than 12 months ago so we haven't really seen much growth yet Simon. Well not enough to try and use for another purchase just yet so it will just be hard earned cash for the next one!
     
    Simon Moore likes this.
  8. tobe

    tobe Well-Known Member

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    She cant get the grant. its stil worthwhile doing the numbers on a new property, stamp duty is based on land value only, and there are some advantages like depreciation and less repairs and maintenance with new. the issue is most areas with available land dont usually see much capital growth in the short to medium term.
     
  9. Property Hippies

    Property Hippies Member

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    I thought that might have been the case Tobe. Will see how the numbers stack up overall
     
    tobe likes this.
  10. MrFox

    MrFox Well-Known Member

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    The problem with house and land packages is that the developers usually release land in stages. You will have lot of competition from brand new homes build next door to your subdivision so there will be very little capital growth.