Here at Axon, it’s a really great feeling to find premium investment properties for our members… but moves up a few notches when we develop a plan and strategy together that squeezes money from the ADF and the Govt for people to buy their first home to live in!
Check out this awesome success story from a double-Defence couple in the RAAF. They are able to grow their family AND a property portfolio at the same time.
When you jump in as an owner-occupier you might be able to unlock access to thousands of dollars worth of government and ADF grants (FHOG, HPAS and DHOAS – and Homebuilder from 2020)
Accessing these grants and being posted to RAAF Williamtown in Newcastle made it a no-brainer for these Axon members to secure a block of land in a prestigious location and build an amazing home to live in.
- Purchase price: $596K
- Grants used: Homebuilder ($25K), HPAS (~$11K after tax), NSW FHOG ($10K) = $41K
- Ongoing subsidy: DHOAS
- Equivalent property purchase price in the location: approx. $750K (based on comparative sales recorded in Mar & May 2021)
A word of warning: When you are building a property that you will personally live in, a certain level of emotional capital will slip into the property. This is normal! But you do need to keep in mind (if it’s going to become an investment property) that any emotional decisions that you make need to have a great return on investment (ROI).
These clients have nailed that by allowing us to help them select a location and home that has both owner-occupier and investor appeal!
When they get posted in Jan 2023, this property will transition into an investment property. It’ll likely bring in approx $650pw rent.
So this will be a positively geared investment from the get-go with 3 forms of income (rent return, tax return, and ongoing DHOAS subsidy – how good is that?!)
Looking ahead, these Axon members have already taken up their second Success Package as we commence the acquisition process for what will be their second investment property – see the sync matrix we created for them – this will give you an insight into the military-style planning we do for our members.
It’s little wonder these amazing people are stoked with the direction their life has taken since linking up with us mid-last year. Let us know what you think of this one – would it suit you as a first home?