Hello all, & a Merry Christmas! Or rather, to be politically correct - happy holidays!
OK, bit of an odd question here (sounds rather complicated to myself, but I'm sure to you Guru's it's a quickie) :-
If I were to buy my first house with intent on renting it out for 3-4 years, would this be classified as an Investment Property? The ultimate goal would be of course to live in it, but renting it out as to pay it off - whilst we live in a much more affordable rental place
Now, if the property is classified as an Investment Property, does this still entitle us to the First Home Buyers grant? We do intend on living in it, it is our first purchased house, however we just wouldn't be living in it for a while.
Or, is there a way to cheat the system? For instance, buy the house, collect the grant, live in it for a couple of weeks - then rent it out & classify it as an Investment Property / claim the tax deductions on the loan Interest? Best of both worlds!
Or, is it all to do with the type of loan? Investment Loan, Home Loan - surely those could be refinanced though
Well, the main question is with regards to the home-buyers grant, whether or not we would be entitled.
I would certainly prefer to be able to deduct the interest though - would save a lot more than the grant would!