Hi all – I’m about to sign the paperwork for an OTP property in Melbourne, due for settlement in 3 years.
Question: how will this affect my FHOG?
Do I effectively have 3 years to buy a PPOR and collect the $7k, or have I lost it already?
L.
I beleive the ATO determines a purchase to occur on the exchange of contracts. Not sure about the Office of State Revenue (or whatever it is called). So this would probably be deemed a purchase and you would not be entitled to the FHOG (unless you will live in this one?).
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Louise,
I haven’t put this to the test and therefore could be wrong, but my understanding of the FHOG is that if you purchase a residential property as an investment from July 2000 onwards and don’t live in it, you are still eligible for the grant when you buy your PPOR (assuming you didn’t buy any other property before July 2000). Check out the FHOG official web site and see if you interpret it in the same way. I believe the NAB also used to state this on their site.
Ciao,
AnastasiaHey Loiuse,
the best place to find out would be to send an email off to the state revenue office of victoria explaining your situation and get your answer straight from the horses mouth.
their web site is http://www.sro.vic.gov.au
regards
ALex[8D]Hi Louise,
It really depends on the state you’re in. Although the FHOG is a federal government grant, it’s administered by the States, which means that each State passes its own FHOG Act. Unfortunately, while the Acts are all similar, they are not identical. So certain things that you can get away with in one State might not apply in another State.
I know that in WA, once you buy an investment property, you can forget about the FHOG (unless you move into the investment property within 12 months) as your PPOR – this is all detailed in my DIY residential settlements/conveyancing book that I’m writing.
Check out http://www.austlii.edu.au to find the correct Act.
You can also check the relevant State’s Treasury or State Revenue website for information on how they administer the FHOG.
Post another message if you’re still stumped, and I’ll see if I can help you out some more.
Cheers
MWhere did you get this from Elysium?
I know that in WA, once you buy an investment property, you can forget about the FHOG (unless you move into the investment property within 12 months) as your PPOR – this is all detailed in my DIY residential settlements/conveyancing book that I’m writing.
I called the OSR in Perth last week and spoke to the FHOG people and was told that it was perfectly ok to own an investment property first and then claim FHOG on your first PPOR.We are going ahead with a PPOR first now so it doesn’t matter but it certainly is confusing.
Here is the relevant section of the act for NSW, it is the same for WA.
http://www.austlii.edu.au/au/legis/nsw/consol_act/fhoga2000250/s11.html(3) An applicant is ineligible if the applicant or the applicants spouse has, on or after 1 July 2000 and before the date on which the application is made, held an interest in property (other than property to which the application relates) used at any time on or after 1 July 2000 as the residence of the applicant or the applicants spouse, being:
(a) a relevant interest in residential property in New South Wales, or
(b) an interest in residential property in another State or a Territory that is a relevant interest under the corresponding law of that State or Territory.
It is my understanding that if you owned ANY residential property prior to July 2000 you are ineligible but after July 2000 you may “have a relevant interest” in residential property that was not your own place of residence and be eligible when you buy your first PPOR.
Sorry guys – it was late and I was in a hurry to meet some people for dinner (lame excuses I know).
I’ve checked the Act and my book again. I was wrong.
Caz is right.
Apologies for posting the wrong stuff in haste.
[xx(]
To redeem myself, here’s a tidbit – there doesn’t seem to be a time limit on when you have to claim the grant. So even if you buy an investment property, and move into it within 12 months after ssettlement as your PPOR, you may still be able to claim the FHOG on it! I’m not sure if a 3 year settlement period changes things, but I’ll look into it more and post my results. However, I believe that some State Revenue Depts have had some difficulty working out how to treat OTP purchases under the Act.
Well, I’ve looked into it and am pretty sure of my conclusion – if you moved into your OTP within 12 months after settlement as your PPOR, you can technically still claim the FHOG, even if settlement is 3 years away. The only caveat is whether or not the FHOG is still available in 3 years’ time, and if not, whether the repealing legislation provides for some kind of transitional process.
I know it’s not the answer to your question, but I think your question has already been answered (ie you can still claim the FHOG if you buy a PPOR after you signed the contract for the OTP, as long as you didn’t own any residential property before 1 July 2000 and you didn’t buy and live in a property after 1 July 2000). Hopefully, this would give you some flexibility in the future, and make up in some part for my stuff-up.
Also, here is the hyperlink to the Victorian FHOG (I’ve re-read your post and presume that you’re in Melbourne) website:
http://www.sro.vic.gov.au/sro/srowebsite.nsf/rebates_fhog.htm?OpenPageCheers
M
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