Does investment property count as first home?
Yes, you may be able to use the First Home Owners Grant (FHOG) to purchase an investment property but generally, you’ll have to live in the property for at least six to 12 months when you first buy it. Some states also require you to move into the property within 12 months of purchase.
Can you use first home buyers for investment?
Can I still get the FHOG if I purchase an investment? No. The First Home Owner Grant is only available for an owner occupied home — not an investment property. However, in some states like NSW, you only need to live in the property for six continuous months before you can rent it out.
Can I convert my primary residence to an investment property?
Once you’ve lived in the house for the required timeframe for your mortgage, you can begin turning your primary residence into a rental property. Although you might be eager to own rental property, owning a primary residence and converting it later has its advantages.
Should I buy a house before investing?
Instead of buying a home and paying the mortgage yourself every month, consider a first time buyer investment property to rent out. … Plus, charging more for rent than your monthly mortgage payment will produce extra cash flow that can go towards debt, bills, rent or savings for the down payment of your next house.
How long should I live in my first home?
But ideally, you should stay in your first home for at least three to five years before you move again. You usually need to stay that long to break even on the mortgage. If you know you will be transferring to a new area or will want to move to a larger home in a year, then it might be better to wait to buy a home.
Do I qualify as a first time buyer?
You’re typically a first time buyer if…
You only own, or have owned, a commercial property – such as a shop, restaurant, or salon that has no living space attached to it (such as a pub with upstairs accommodation).
Can I rent out my house without telling my mortgage lender?
Can I Rent Out My House Without Telling My Mortgage Lender? Yes, you can. But you’ll probably be violating the terms of your loan agreement, which could lead to penalties and immediate repayment of the entire loan. So before you decide to rent out your property, you must inform the lender first.
Can I rent my house if I just refinanced?
If you fully intend to rent out the property after your refinance closes, especially within a year of closing, then you should select rental property on your application. … Additionally, you can usually qualify for an owner occupied refinance with less homeowners equity or a lower down payment.
Do I need to change my mortgage if I rent my house?
If your mortgage lender discovers you’ve moved out and have tenants living in your property, they may view it as mortgage fraud and could even demand that you repay the mortgage immediately or they’ll repossess the property. … But if you do want to let out your home, you may not need to switch to a buy-to-let mortgage.