Hi
Just reading through many of the discussions and find it great reading.
I will be a first property owner as I am just beginning my search. However if I buy an Investment Property now I will miss out on the First Home Owner Grant.
I don’t exactly want to move from my rented accommodation at present but am anxious to get an Investment Property.
Does anyone know how I can get the FHOG if I want to buy an Investment Property before buying a home.
Sorry I must seem very green. Yes okay I am green. But I thought there may be some rule that I am not aware of that would help me.
To be eligible for the base $7,000 grant, you must have completed an eligible transaction in relation to the purchase or construction of a home that is your first home and must satisfy certain eligibility criteria. The eligibility criteria are as follows. (All criteria must be satisfied for you to be eligible.)
You must be a natural person (i.e. not a company or person acting in the capacity of trustee)
You, or a joint applicant, must be an Australian citizen or a permanent resident.
You or your spouse must not have received an earlier grant under the First Home Owner Grant Act 2000 or under an Act of an Australian State or Territory providing for payment of a first home owner grant, unless the earlier grant has been repaid.
You or your spouse must not have previously owned an interest in residential property in Australia prior to 1 July 2000. This includes investment homes.
You or your spouse must not have, on or after 1 July 2000, owned an interest in residential property in Australia and lived in that property.
You must occupy the home for which the grant is claimed as your principal place of residence within one year after the eligible transaction for the home is completed.
Jules1 said:
Does anyone know how I can get the FHOG if I want to buy an Investment Property before buying a home.
The short answer to your question above is “yes” IF:
you have never owned any residential property before 1 July 2000; AND
you have never lived in any residential property which you bought after 1 July 2000.
Of course, you still need to comply with all the other eligibility requirements.
Also, if you buy an IP now, but decide down the track to live in it instead, you should be able to claim the FHOG on that property, because it would have become your principal place of residence.
this section from the WA FHOG Act may answer your question (the Acts for the other states should be similar – check http://www.austlii.edu.au): Section 7
(2) If the Commissioner is satisfied at the time of deciding an application for a first home owner grant that —
(a) an applicant is legally married but is living apart from the person to whom the applicant is legally married; and
(b) the applicant and that person have no intention of again living together as a couple,
the person to whom the applicant is legally married is taken not to be the applicant’s spouse.
Which may mean that both you and your wife may each separately get the FHOG, as long as all the other criteria are satisfied and none of the disqualifying events occurred before you separated.
You can always give the relevant State Revenue Dept. a call to clarify whether or not you’re eligible, and what kind of proof you need to provide.
I am single and have not owned my own home nor an IP before and so reading the replies it seems I may be able to get the FHOG.
that would be fabulous.
I have been reading Steves book and based on what you are telling me… I’m getting excited already. Looks like I will be able to go ahead with an IP investment and the FHOG will certainly go a long way to helping me do that.
Yes as you suggest I will go to the State Revenue Office to follow up.
Just to clarify something – your last response seemed to indicate you want to use the FHOG as part of your deposit for an IP??? You can’t do this UNLESS you are planning to live in it within 12 months of buying the property (can rent it out until then if you want). Also, as Elysium has already said, you may be able to claim it retrospectively for the property later on, if you decide in the future to make it your PPOR. (not 100% sure about this latter point as I don’t know anyone who’s done this).
What the rule IS saying is that if you buy an IP today and don’t intend to ever live in it, you haven’t blown your chance to claim the FHOG if and when you buy a property to live in. Assuming of course, that the gov. doesn’t scrap the grant anytime soon….
Quote: “you have never owned any residential property before 1 July 2000; AND
you have never lived in any residential property which you bought after 1 July 2000″
Just a double check. If I have IPs bought after 7/00 and have never lived in any of them, i’ll still be eligible for the FHOG when I buy a property I plan to live in? That’s how i read the government fact sheets also but many accountants ie other “professionals” say no.
Good point. The only way to know is to ask. Except that most of the people who answer calls don’t know much better and they often provide wrong answers I’ve found.[!] I did ring once to get an answer to the effect of: “That’s not what it meant even though that is what it said…” if you follow me.
As mentioned previously; you must intend to live in the property within 12 months of settlement. To be eligible.
However, it does not state, how long you have to live in the property for! You may live in the property for 1 week and you have satisfied the criteria.