Hi,
My situation is that I have been offerred the purchase of a block of land by family, basically the rear block where they have just been allowed to sub-divide. They are offering to sell it to me for half what they paid for the full block and extisting house about 6 months ago….seems to be a total bargain.
However, It's in a Ritzy area that I'd love to live in but can't quite afford. Once I bought the half block and built a house it would nearly kill me to make the repayments..
So..my question is…
If I buy the new block as an investment property, and rent it out for a few years (park myself somewhere cheaper) and try to make a dent in the loan, i get all the tax advantages. If I then decide that I want to move in (change it to my PPOR), can I then claim the FHOG?
Any advice on this would be great..I am going to see an accountant when I get a chance but I' trying to get a bit of an understanding before then.
Cheers
Hugh
Either search this site or google the ATO, but my understanding is that you must live in the house for at least 6 months starting sometime within the first 12 months to qualify.
Yes, i dont think you can claim the FHOG unless you move in within the 1st 12 months and live there for 6 months at least.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
So does that mean I can build it as an investment property, claim the interest as a tax deduction and then move in in month 11 and get FHOG?
Yes
Richard Taylor | Australia's leading private lender
Is it possible to get a lease on an off the plan property that is for a FHOG buyer?
Provided that the tenant vacates before 12 months to allow the FHB to occupy and meet that requirement there shouldn't be a drama (but I would read the fhb conditions to confirm).
Thanks all..
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