I think I posted this in the wrong forum earlier on. Hope I’ve got it under the right heading this time…. Here goes:
Until a few days ago, I was under the illusion that my son (Qld resident, currently buying his first IP in WA) can buy any number of investment properties, and still qualify for FHOG when he decides to buy and move into his PPOR in Qld.
Then 2 new pieces of information unsettled me:
1. Our Settlement Agent in WA told me, emphatically, that the WA govt does a title search on all new purchases, and if my son’s name has ever appeared on any title deed on any property anywhere in Australia, he is automatically disqualified from the FHOG.2. When I checked this with a Victorian mortgage broker, she told me that the FHOG situation for investors is different in each state. For example, in Victoria, the WA situation described by the WA settlement agent also applied in Vic until the Vic govt changed the law a year or two ago (ie., it used to disqualify investors, and now APPARENTLY allows FHOG to be paid).
Three questions:
1. My 20 year old son is a Qld resident buying his first ever property in WA (its an IP, not PPOR). Will this disqualify him from FHOG when he wants to buy his PPOR in Qld (ie., what is the Qld situation?)
2. Is the WA settlement agent correct?
3. Is the Victorian mortgage broker right?Cheers
Greg FThanks MA
You’re awesome!!
Does this mean, as a Qld resident, he has to purchase his PPOR in Qld. Are ther any states where you disqualify yourself if you buy your IP before you buy your PPOR?
Can you confirm that:
1. WA is not on for FHOG if you buy your IP first
2. Vic is the same as Qld, ie., he can buy his Ip and still qualify for FHOGThanks SO MUCH!! And sorry to be asking so many questions.
Cheers
Greg FGreg,
I am puzzled here.
Before we start let me say I consider myself to be reasonably up to date on the FHOG and have found many people who have been poorly advised by solicitors, brokers and bankers. Don’t trust any of them – go to the government department.
The FHOG is a federal initiative administered by the states. I am surprised that there should be any differences.
Some people are just not well informed and are going off old info. My understanding is that any property owned before Jul 2000 will mean no FHOG. However any IP which was purchased but never occupied since that date is OK.
Take a look at my website. Under FHOG I have links to all the state bodies administering the FHOG. I bet they have the same requirements.
http://www.mortgagehunter.com.au/first-home-owner-grant.html
I think your advisors are ill informed and would suggest you find some that understand the legislation.
Here is the Act.
http://www.housing.wa.gov.au/about/about_firstbill.pdf
Take a look at page 9 of the document and I think you will find your question answered.
Hope this helps. If anyone has ever been told conflicting advice about the FHOG then please call your relevant state authority. Contact numbers are on my website – just go to the relevant state.
And lastly if anyone has missed out on the FHOG because of poor advice – don’t think it too late.
https://www.propertyinvesting.com/forum/topic/9062.html
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=7951&SearchTerms=FHOG
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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