All Topics / Help Needed! / FHOG & Stamp duty exemption

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  • Profile photo of The PupsThe Pups
    Join Date: 2005
    Post Count: 15

    Hi everybody!

    Well it has been a bit over a month now since we decided to pursue property investing seriously and have been dilligently saving our pennies. Our focus was to source the “rough diamonds” and value add to create positive cashflow.

    A visit to our mortgage broker last week provided a pleasing suprise as we now know exactly how much we can borrow (different combinations of taking out the loan) and how much start up capital is required for us to move ahead.

    Now, the different combinations i speak of come about because Belinda has already used her FHOG & stamp duty exemption in buying her own house (which is our PPOR) before we got together. Which means that, to the best of my knowledge, i can still use my FHOG & stamp duty exemption. Our broker suggested that we would be mad not to take advantage of these, and we agreed on this point.

    So now our focus has shifted to properties relatively local to us which may be negative (or at best neutral) cash flow. We know that this is not what we were originally aiming at, but the plan is to hold onto the new property for 18mths-2yrs and get out with tidy capital gains (we expect the area we are looking at to experience good capital growth in that time frame).

    What does everyone think? Any comments, thoughts or suggestions would be very much appreciated!


    Daniel & Belinda
    AKA The Pups

    Profile photo of pyramidpyramid
    Join Date: 2005
    Post Count: 64

    I am not sure what your mortgage broker has advised you, but here is a quote from the NSW Lodgement Guide re: eligibility for FHOG and exemptions:
    Applicants and their spouse (including a de facto partner) must:
    Not have previously received a First Home Owner Grant in any State or Territory of Australia
    Not have owned a residential property anywhere in Australia prior to 1 July 2000
    Not have owned and occupied a residential property anywhere in Australia after 1 July 2000

    Sorry to bring the bad news but that’s how it is. Better to be legally right than wrong![specool]


    Profile photo of Mortgage HunterMortgage Hunter
    Join Date: 2003
    Post Count: 3,781

    I think your Broker has either erred or is encouraging you to commit fraud.

    If you are in a defacto relationship then the FHOG is used.


    Simon Macks
    Residential and Commercial Finance Broker
    ***NODOC @ 7.15% to 70% LVR***
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of The PupsThe Pups
    Join Date: 2005
    Post Count: 15

    Thanks for the replies, we were a little wary about this plan of attack!

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