Hi guys, just a question regarding the FHOG.
Here is my situation:
– I have not previously owned or lived in any property for more than 6 months (single or as a couple) that has been in my name (single or joint)
– I am about to purchase a property as an investment (that will be rented out) that will be in my name – but will continue living with my parents (meaning my PPOR will still be at home which is owned under my parents names)The question is:
Will I still be eligible for the FHOG when I do decide to buy a second property but decide to use this as my PPOR and live in it for 6 months+? Or will having a property already owned under my name exclude me from the FHOG?
This varies from State to State. Check out http://www.firsthome.gov.au/ and select which State you are in.
My query is for the state of NSW:
The eligibility requirements are stated here:
http://www.osr.nsw.gov.au/benefits/first_home/general/eligibility/The way I interpret it, it seems that since I am not residing in it as my PPOR and it is purely as an investment, I should still be eligible for the FHOG when I make another purchase at a later stage for the purpose of making it my PPOR. My solicitor is adivising I will not be eligible however..
Hi,
From my understanding, you would not be eligible as you would have previously owned a property.
No you WILL be elligible for the FHOG your Solicitor is incorrect.
The fact that you have never owned a property which you have resided in means you will still qualify.
Remember the FHOG is Federal Govt controlled adminstered only by the individual States.
Richard Taylor | Australia's leading private lender
I am with Richard on this one…………
I have listed the two important points for you to consider (both of which suggest your solicitor is wrong):
All applicants and/or their spouse/de facto have not owned a residential property, jointly, separately or with some other person, in any State or Territory of Australia before 1 July 2000.
All applicants and/or their spouse/de facto have not owned on or after 1 July 2000 a residential property and occupied that property jointly, separately or with some other person in any State or Territory of Australia for a continuous period of at least six months.
Thanks for the speedy replies and yes Richard is right as confirmed by a reply from the OSR, here is an excerpt from their reply:
If an applicant and their spouse/de facto partner has purchased an investment property after 1 July 2000 in any State or Territory in Australia and has not lived in it for more than 6 months, they may be eligible for the grant under the First Home Owner Grant Scheme on the purchase of their first owner occupied property providing they meet all other criteria.
If the investment property was purchased before 1 July 2000, the applicant and their spouse/ de facto partner would not meet criteria under the First Home Owner Grant Scheme.
Applicants or their spouse/ de facto partner can not have owned any property previously to be eligible to receive exemption or concessions on their stamp duty under First Home Plus. To further clarify this point, if you decide down the track to buy an owner occupied property you will be liable to pay stamp duty.
Thanks for helping me out !
I was worried about this when I was purchasing my first investment property. I decided to purchase with a trust…mainly for asset protection, but as a bonus so I could still get the FHOG when I was ready to buy my own home.
Good to know that you can invest in your own name and still get the FHOG
Ryan McLean | On Property
http://onproperty.com.au
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