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  • Profile photo of AkiraAkira
    Join Date: 2002
    Post Count: 0

    Hi everyone
    I’m only starting to learn about investing and I was wondering if someone could explain what FHOG and wrapping is in more detail?[?]

    I think I understand the basics of wrapping, but I want to make sure I got it right. From what I know wrapping is like yourself acting as a bank, in which you buy a house for some else who then pays off the house you bought for them, through repayments at a higher rate then the bank’s rate, over a number of years.

    So I would like some light on FHOG and wrapping if you can help.


    Profile photo of Steve McKnightSteve McKnight
    Join Date: 2001
    Post Count: 1,763

    Hi Akira,

    The First Home Owner’s Grant is an incentive introduced by the Federal Governemnt and acts as a subsidy for genuine first home owners.

    The grant currently sits at $7,000.

    The FHOG legislation allows the grant to be payable in vendor finance / installment sales contracts with varying conditions depending on the State that you live in.

    In Vic & NSW, the grant is payable when the person moves into the property, which allows the investor to receive back an immediate cash injection and reduces the nett amount of money left in the deal.

    If the person moves out of the house then it is his / her responsibility to pay it back.

    I usually take the FHOG as my lead’s deposit, which is how I am able to offer what I do for people without savings.

    As far as more information on wrapping goes, visit:


    Steve McKnight

    Steve McKnight | Pty Ltd | CEO

    Success comes from doing things differently

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