QLD - First home concession / First Home Owners' Grant

Discussion in 'What to buy' started by Tsuli, 13th Jan, 2019.

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  1. Tsuli

    Tsuli Member

    Joined:
    16th Dec, 2018
    Posts:
    5
    Location:
    Brisbane
    Hi All,

    My question is: is it worth chasing the first home concession and grant offered by the QLD government? Neither my partner or I has ever owned a home.

    Three scenarios:
    1) we buy a existing, freestanding house in a decent area for ~$750k as a PPOR and we live in that for 5-10 years, with 20% down and a couple hundred in the offset from day one. IPs would then come after this as the desire / need arose, but we would not receive any government perks.
    2) We buy a new <$500k property, live in it for 12 months to obtain both the concession and grant while looking for the PPOR mentioned above.
    3) We each buy a new <$500k property (living in each for 12 months) under our own name to maximize the government support we as a couple receive (each of us gets the grant and concession) and then buy the PPOR mentioned in strategy 1.

    Once we've developed our strategy, it will then come down to asset selection (house vs t.house vs. apartment), and whether new properties are worth chasing for the FHOG. My primary concern is that the research I've done indicates that buying the best asset in the best location seems to be the most effective investment approach, not chasing government incentives in new estates or towers. However, if we decide not to buy new and forgo the FHOG, should we still aim for <$500k property to make use of the stamp duty concession?

    We have enough savings to execute on the above options. It's just a matter of whether it makes financial sense. In terms of goals, we want a paid off PPOR and a couple of IPs by the time we retire.

    Thoughts are appreciated!
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,599
    Location:
    Gold Coast (Australia Wide)
    dont think 3 will fly for a couple of reasons, serviceability and the capacity for a FHOG if the spouse has had one is limited

    ta

    rolf