NSW Worth buying townhouse in Mt Druitt, Plumpton area

Discussion in 'Where to Buy' started by Arthurark, 15th Aug, 2021.

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  1. Arthurark

    Arthurark Well-Known Member

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    In the current market. We'd like to buy a PPOR but are priced out in our areas of preference. I work out in the Plumpton area and I know it has potential in the long term, but not currently an area I would like to live.

    We could get a 4 bed townhouse for roughly 550k, and leave it unoccupied for 6 months as a PPOR (or live in for 6 months whilst we renovate). Then put it on the rental market shortly after.

    Fundamentals: we'd invest 80k as deposit with a 470k mortgage. FHB. It could rent out for $470 a week. Mortgage at roughly $433 p week (on the rate the broker has given us). We currently pay $495 a week in rent in our northern sydney region.

    is this a viable strategy? I've looked into investing into property in other capitals, but investing in Sydney and taking advantage of our FHB status seems more interesting and wise given we don't play to leave sydney for some time. Would appreciate some thoughts or sobriety on this topic..
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    No, you must move in to qualify for FHBG.
     
  3. skater

    skater Well-Known Member

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    As @Scott No Mates said, you must actually LIVE in it for 6 months to qualify for the FHG.
     
  4. scientist

    scientist Well-Known Member

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    yeah or just do a dodge and move in on paper
     
  5. gach2

    gach2 Well-Known Member

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    Just a word of caution if you are going to dodge the living in 6 months mark, maybe ask the ATO what proof you require and make sure you are able to provide the proof. Ive seen people being caught out later
     
  6. Arthurark

    Arthurark Well-Known Member

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    yes I will have to look into this now. I would have thought if I was paying the mortgage without a tenant and bearing the entire cost and using it as I saw fit it would be my primary residence. I wonder how they can track I’m sleeping in it 6 months? Or if my partner lives in it or whatever. Seems hard to track but I will check and see.

    Alternatively I could buy a 2 bed unit in my desirable location and live in it indefinitely.
     
  7. gach2

    gach2 Well-Known Member

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    No, if you say you live in the house you need to actually live in the house. There are general things an occupant would have to prove they did. Eg electricity usage etc
     
  8. Scott No Mates

    Scott No Mates Well-Known Member

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    Being seen living there by neighbours, furniture moved in, using the local shops (credit/debit card usage) & more like living there.
     
  9. hash_investor

    hash_investor Well-Known Member

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    Why do you see potential in a townhouse in Plumpton?
     
  10. Arthurark

    Arthurark Well-Known Member

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    I guess it’s more based off getting more land than an apartment.
     
  11. Spad

    Spad Well-Known Member

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    They will ask you for electricity and water bills as part of verification. How could someone be living there if those bills are very low.
     
  12. skater

    skater Well-Known Member

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    You get even more land with a house, than a townhouse.