ADF Property Success: Timing & Location for Maximum Entitlement Benefits
Timing and location are crucial factors when utilising your ADF Housing Entitlements. Learn how to strategically time your property purchases and maximise your ADF benefits.
How Timing And Location Can Kick-Start Your Portfolio
This video explores a smart and strategic way to use your ADF housing entitlements to set yourself up for long-term property success. It follows a case study showing how timing and location play a crucial role when it comes to pulling the trigger on your entitlements and government grants like HPAS, DHOAS and the First Home Owner Grant.
The strategy begins with purchasing and building a brand-new property in the right area, then living in it for 12 months to meet grant conditions. From there, once you’re posted elsewhere, you can turn the property into an investment, giving you access to rental income, tax benefits and ongoing DHOAS subsidies.
As the property grows in value, the equity you’ve built can be used to help fund your next purchase. Because you bought well, you’re in a stronger financial position and more likely to get future loans approved. Overall, this video highlights how smart use of ADF entitlements can be the launchpad for growing a successful property portfolio.
Video Transcript
Hey, when you’re using ADF housing entitlements, you’ve got a couple of choices. You can pull the trigger on it too early or you can actually nail it and use them at the right time in the right place.
Watch this awesome little case study. It makes a massive difference.
So all the way back here, you basically identify the property, you apply for your first homeowners grant, you’ve got your HPAS and your DHOAS. You go ahead and you basically build the house, you’re maintaining your occupation and your MIA, your RA or your living in accommodation, you move into your brand new house. Happy days.
You live in the house for 12 plus months. That basically satisfies some of the criteria of the grants back here.
Fast forward a little while down the track, you probably receive a posting order. So you’re then going to rent that property out and maintain your DHOAS grants.
Now that this property gets turned into an investment property, you’ve got three forms of income – you’ve got a rent return, you’ve got a tax return and you maintain your DHOAS subsidy.
Sounding pretty good.
But here’s the great thing. Because you bought at the right time, in the right place, you’ve now got some, you know, this growth in your property and you’ve got equity which we can now start to materialise.
Fast forward another little while and you’re like, hey, let’s now go and buy another property. Because you’ve bought at the right time, in the right place, you can see you’ve got a whole lot of equity sitting in that property.
So when you do go and basically put together the new loan application, because you’re sitting in such a strong position, the likelihood of you getting your loan approved is actually going to be much, much higher.
When you do get it right and you’re living in a cracking location, we do recommend you go ahead and pull the trigger on your ADF housing entitlements and the other government grants because it’s going to really kick start your portfolio.