Hey,
This may not be news to many of you but I thought I would pass it on all the same. I recently sent an email to the state revenue office asking how long I need to stay in a residence for me to claim the FHBG..(the reason I bring this up is that I read in Bella’s post that she needed to stay in her unit for 12 months)..
Heres what the State Revenue Office said :-
I refer to your query and advise that there is no minimum qualifying period
in which the owner is required to live in the property, however, it is a
requirement on receiving the grant that you move into the property as your
permanent place of residence within the first 12 months after settlement or
completion of construction.Should you move into the property and then wish to move out of the property
within the first 12 months, you are require to write to us advising of your
situation and indicating the actual date you moved into the property. You
are also require to provide us with evidence that you have actually lived
in the property in the form of copies of utility accounts, change of
address on you drivers licence, copy of house and contents insurance
policies, copy of telephone accounts etc.I paid particular notice to the phrase “within the first 12 months after settlement”, this would imply that I must move into it but not stay there for 12 months (connect the gas and elec, then disconnect them again a week later).
If anyone can tell me if what im proposing will land me in trouble then I would GREATLY appreciate it…
When it comes to the government and money they dont like the stuff slipping through their fingers, well not back to us tax payers. If they decide that you have ripped them, they won’t be happy. I would say to play it safe. Play by the rules, dont try to bend them. You dont have to be there for 12 months, but have a good excuse why you are moving out. If you get the grant, spend it, then have to pay it back, you could be behind the 8 ball! Your call but i would be very careful. maybe someone else has tried this? anyone?
Both me and my girlfriend have been given the fhbg and we have both sold within the 12 months. I even have a friend who sold his premises to his girl friend where the both have received the grant. My interpretation of the grant is that you have to be seen to be living in the premises with in the first 12 months for how long it doesnt matter. Tails
Just a question
Who pays for the fhbg?
I don’t want to sound pious and suggest not to take from the “system” but as an investor the fhbg was a green light to inflate the market price, every owner could see an instant $7000 (initially $14000) on top of existing values and what has happened in many if not most places is that demand has fueled the increase in property value. So if you want to grab the $7000 you will probably be paying more than $7000 due to its effect. I am not being negative I just want to recommend buying well with the fhbg as a bonus not an incentiveThank you all for your feedback. An Economist friend of mine told me that the way they worked out the figure of $7000 was based on the average amount of tax and other expenses that are incurred when buying a property, so it was decided that rather than wavering the charges/taxes on buying into property they just give you a cashback sort of a deal (not sure that this is 100% true but interesting none the less).
Cheers,
Jake.
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