Would you buy ugly & dated in the area you want or apply for homebuyer fund and buy better?

Discussion in 'What to buy' started by Nina00, 19th Oct, 2021.

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  1. Nina00

    Nina00 Well-Known Member

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    So I’m trying to decide between buying a dated/ugly place in the area I want that I would own 100% of OR applying for the homebuyer scheme so I can buy something better but the govt will own 25% of it.

    Down the track when I want to sell it, the govt gets 25% of what it’s worth at the time of sale. My head is telling me that option one is the better one.

    Here is an example of the dated type of place I mean….
    Btw I’m not looking at buying this property, it’s just a random example I found.

    https://m.realestate.com.au/property-unit-vic-mitcham-137451162
     
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  2. Sackie

    Sackie Well-Known Member

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    Ugly and dated every day of the week if all other things are equal. You have the ability to add value.
     
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  3. boganfromlogan

    boganfromlogan Well-Known Member

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    The homebuyer fund seems to be a winner!! Why not get on that one?

    I hope my family member will get on it.

    Nothin wrong with ugly!!
     
  4. Nina00

    Nina00 Well-Known Member

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    Because I will need to pay the govt 25% of the value of the property the day that I decide to sell it which could potentially be hundreds of thousands of dollars. I will also need approval to do anything to the property that’s over $10k.

    I understand that they lent me the money in the first place but I couldn’t imagine at the age of about 65 trying to come up with potentially $300-500k to pay them their share on top of the mortgage I have.
     
  5. balwoges

    balwoges Well-Known Member

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    You call that ugly !!! there are a lot of people who would love to call that house home ... :D
     
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  6. Trainee

    Trainee Well-Known Member

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    But if you can buy 1m v 750k, the gain on the 250 would never have been yours anyway.
     
  7. Gockie

    Gockie Life is good ☺️ Premium Member

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    Same!
     
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  8. wylie

    wylie Moderator Staff Member

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    I'd go with owning it and not having someone telling me what I can do and then taking any profits for hard work I'd be doing.
     
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  9. Nina00

    Nina00 Well-Known Member

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    Yeah sorry! I just picked whatever didn’t look like the typical home beautiful type of house! Where everything is beautifully updated
     
  10. Joynz

    Joynz Well-Known Member

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    You can pay off the government’s part early.

    The website even says ‘Participants can repay the Homebuyer Fund’s share, or interest in their property over time. Repayments can be made by refinancing, using savings, and from proceeds when the property is sold.’

    And even if you don’t, you won’t have to ‘come up with’ any money - they’ll get it from the proceeds of the sale.

    The purpose is to help people get into the market. It sounds like you don’t need it.
     
    Last edited: 19th Oct, 2021
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  11. thatbum

    thatbum Well-Known Member

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    This seems an odd way to think about it. You don't have to pay 25% of the value - you never owned it or paid for it in the first place. Think of the savings on that!
     
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  12. boganfromlogan

    boganfromlogan Well-Known Member

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    Leave the homebuyer scheme to someone who appreciates it then. You have too many good options, pick what you like and have a great life :)
     
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  13. Sackie

    Sackie Well-Known Member

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    Very subjective I agree. To me it looks like a total gut job :D
     
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  14. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    When it comes to real estate, Boring is Beautiful Nina00. Ugly is not far behind.
     
  15. Hamish84

    Hamish84 Well-Known Member

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    Oh I love that place. Not looking to buy? Yeah right, I’ll see you at the auction :D
     
  16. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    The problem with that property is the irregular land shape, not the aesthetic.
     
  17. Stoffo

    Stoffo Well-Known Member

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    So do the government pay any rates or repairs ?
    Best to go it on your own if you can.
    Ugly is subjective
     
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  18. craigc

    craigc Well-Known Member

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    Yeah wondering - do government pay 25% of stamp duty as well?
     
  19. Stoffo

    Stoffo Well-Known Member

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    Yeah sorry, I probably shouldn't have been so sarcastic !

    I imagine that if Govco paid 25% of anything (other than effectively loaning 25% of the purchase price) that they would want rent of 25% in return for your use of their portion of property...

    You really wouldn't want to be doing much to the property......
    Imagine buying a $400k run down dump though (Govco throw in $100k), then over the following 3 years you spend $400k (inheritance) to renovate and extend the home and sell (divorce) for $1M (having to give Govco back 25%/$250k).
    In reality it's only a $200k profit, Govco didn't contribute to the reno's but get $150k of the profit
     
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  20. Optimus

    Optimus Well-Known Member Business Member

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    But without them, you'd be still renting.....

    2 sides.
     

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