Hi all,
Like many before me, I’m a long time reader, first time poster. In any case, here goes…
My personal situation is that I am to be married in Dec this year. As I understand it, my fiance and I can both get the FHOG and stamp duty exemption if we both buy separately before we marry, but afterwards, only one of us (or together). We are both in a financial position to buy properties and I was thinking that we could both buy something now, then move into one and turn the other into an IP.This would be option 1.
However, I have been considering buying property say in NZ, and as I understand it, the FHOG is still applicable to people who own property outside of Oz. That is, we rent now, buy 2xIP outside of Oz, then at a later date buy our PPOR in Oz. This is option 2.
Do people think that higher yields in NZ offset the FHOG and exemption that we would be missing out on? Almost feels like I’m letting tax considerations rule my decisions. In any case, I’d love to know all your opinions.
Regards.
Hi,
The FHOG is available on a per household basis more than on a per person basis (in it’s spirit). As you are already engaged to get married I think the gov will view you as being a household and as such only able to get one FHOG. After all the grant is so you can buy your first “home” not so you can invest in property. Trust me, there is a lot of discretion open to the gov as regards eligibility; including retrospective denial. That means if you both claim the FHOG then get married and move into one house the gov can at some point decide you misused the grant and retract one or both grants and you’ll have to pay it back, possibly with penalty.The question is: If the grant was actually being offered by a friend or family member to help you get your first home (not invest) would you feel comfy deceiving them into giving it to you? The grant is there to help people buy a home, use it, but use it to buy a home only and you will never have any trouble from the ATO.[buz2]
Hi Surrey,
Thanks for your input. Never really thought about it like that. I just thought that if we qualified, then, yeah, we should take it. I mean, many richer people who buy multi-million homes use it, so why not me? Furthermore, it will be my home and her home – but only for a time. I didn’t really want to bring up any moral issues, but thanks for the reply.
Regards.
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