Hi guys,
I need some helps and advices here..hope you guys can help me. Im renting at the moment and wanting to start my investment. Should I get my own place first, so i wont lose my first home grant and free stamp duty or just go straight to invest and lose my first home grant? Im a bit confused which one to do first.Regards,
Jae.jae
Do either.
You wont lose your FHOG unless you move into an IP.
Whomever has advised you doesn’t understand it.
You can buy an IP post Jul 2000 and retain the FHOG. As long as you never make it your home by moving in you can still have the FHOG when you do buy a home.
Cheers,
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
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.
So does that mean someone could purchase an investment property in NSW or elsewhere in Australia, but then still quality for the NSW FHOG later provided we can show documented proof of consistently residing elsewhere to the Office of State Revenue?
Previously I was also under the same impression as Jae …
Confirmed … here are two of the eligibility criterias on the OSR website:
* All applicants have not owned a residential property in any State or Territory of Australia before 1 July 2000
* All applicants have not owned on or after 1 July 2000 a residential property and occupied that property in any State or Territory of Australia
Cindy
Cindy,
It is just like it says.
No property owned before July 2000.
Able to own an IP after that but not lived in it.
Easy as that! Too many “experts” including accountants, lawyers and brokers are not up with this so no surprise that many people are mistaken about it.
All the best,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
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.
Hi Jae,
I think using the FHOGs to buy a property is an easy way to start.
I note thet you are single so perhaps you could get others to share the costs of the property.
You would have to live in the property for at least 6 months.(corrected thanks Simon)
AND. who knows when the grants will stop!!!!!!!
hrm
NO NO NO NO NO NO NO
Another misconception!!!!!
The period of occupancy is only 6 months. Commencing within the first year.
Why doesn’t anyone check the act before giving advice aaaaaaaahhhhhhhhhhh
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
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.
Can I just add that if you are looking to get the stamp duty exemption in NSW also (which is worth up to $20K), you MUST NOT have acquired a property in Oz previously, irrespective of whether you only had a relevant interest in the property (which is OK for FHOG). Not sure about other states’ stamp duty concessions though if you had only owned an investment property previously. Please check their respective OSR sites.
Ok, if i can rephrase the original question then:
If someone is currently renting, would it be better to purchase their first property in NSW, so that they are eligible for First Home Plus – Exemption or Concession from Duty, (in addition to the FHOG), or begin with several cheaper positively geared investments interstate?
Cindy
Hey Cindy,
Check this handy fact sheet: http://www.osr.nsw.gov.au/pls/portal/docs/page/downloads/other/fhb_factsheet.pdf
I recently had a discussion about the same issue with a property solicitor that should be in the know-how due to years of experience within the field, however they said no no no to all my ideas… So I asked for some proof why such notions as yours above wouldn’t be viable (buy residential investment properties and retain your FHOG and FHPS concessions)… And I was taken to the fact sheet… I found no greater pleasure actually reading what was displayed on my screen and coming to the conclusion that anyone that has never owned a property may purchase either a commercial or residential IP and still claim the FHOG & FHPS when purchasing a PPOR… The property solicitor wouldn’t admit this being a correct observation as the wording was funny… So I am still waiting for their response… Not just because I wanted to prove them wrong and confirm my speculations but just to be appropriately informed which is something we could all benifit from… So have a read and tell us what you think.
Cheers,
Jacob.‘Stay Happy and you’ll be Perfectly Fine’ – Jack
Gee, thanks for the info mortgage broker, i have been in the same position, wondering should i invest in qld and loose the grant or buy something close to home to start with so that i can get the grant etc. and i should have known this info being a legal seco who does conveyancing!! opps!!!
WAIT there is a point in there that says “none of the applicants at any time owned a residential property in any state. Residential property also including investment properties” ??????????????????????????
Alee,
You need to read the legislation in full. Read this thread from the beginning and you will see that you can own IPs post Jul 2000 and not forfiet the FHOG.
You can see the legislation if you follow the links to your state from my website.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
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.
Im in the same situation, would be interesting to hear some advice on this, before i go to the acountant.
Originally posted by Mortgage Hunter:Do either.
You wont lose your FHOG unless you move into an IP.
Whomever has advised you doesn’t understand it.
You can buy an IP post Jul 2000 and retain the FHOG. As long as you never make it your home by moving in you can still have the FHOG when you do buy a home.
Cheers,
Cheers,
Simon Macks
Residential and Commercial Finance BrokerSimon,
I do not think that is correct this is what the act says:
“An applicant for a first home owner grant must occupy the home to which the application relates as the applicant’s principal place of residence
for a continuous period of at least 6 months.”So you have to ocuppy the home as a PPOR. Therefore, you have to move in or you are misleading the commisioner and can get in big trouble.
Clones
Like Simon said you have 12 months within to occupy the home, so you could rent it for 6 mnths then move in for 6 mths or move in first for 6mths and then rent it out.
RoboI seem to be having trouble making this clear.
If you have owned property prior to Jul 2000 you cannot get the FHOG.
I you buy an IP post jul 2000 you do not lose the FHOG. Unless you move into it. Although if you move in for 6 months starting in the first 12 months you can claim the FHOG for it.
To claim the FHOG you need to occupy a home for a 6 month period starting within the first 12 month period of ownership.
Is this clear?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
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.
Originally posted by Mortgage Hunter:Is this clear?
What’s a FHOG?
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958I have already used the first home owners grant but my partner has not. However, she has bought an interstate investment property with me. Does that mean that if she purchased a house to live in under her name that she would still be eligable for the first home owners grant? For the past 2 years I have been informed that she would not get it.
FHOG = First Home Owners Grant
Originally posted by Aphex:I have already used the first home owners grant but my partner has not. However, she has bought an interstate investment property with me. Does that mean that if she purchased a house to live in under her name that she would still be eligable for the first home owners grant? For the past 2 years I have been informed that she would not get it.
When did she buy it?
If she is your defacto spouse and you don’t qualify then she doesn’t.
Derek: Pull your head in.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
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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