I have never owned any property before. I am purchasing a brand new apartment in Sydney and everyone is telling me to live in it for a few months or so in the first year to get the $7000 grant. If I do this do I have to apply for the grant when I settle with all the other paperwork or can I just do it when I actually move in (just in case I don’t mvoe in)? Secondly, if I do decide to do this will I forgo any investment benefits which there may be for property investors?
Any advice or comments are greatly appreciated.
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You need to be living in the property for 12 months to get the fhog. The main difference between owner occupied and investment property is being able to claim the interest component of your loan. An investment property is usually bought with an interest only loan as all of the loan can be claimed as a tax deduction, whereas the interest compnent of an owner occupied house cannot. Maybe what you can do is live in the property for 12 months, get your fhog, get some capital growth, use the equity to buy another property to live in(or rent) and change the loan to interest only. Good luck.
jason,
Where did you get that info from?
Check out http://www.osr.nsw.gov.au
You will see that there is no minimum time needed to occupy the residence as a home. However it must be occupied within the first 12 months. This was done, I believe, to allow existing leases to expire.
However I have heard that they are auditing and the proof they are asking for is three months.
Cheers,
Simon Macks
Mortgage Broker
[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.
That’s true Simon. I’ve just been researching the whole PPOR thing extensively for my first place. There is no minimum time period of residence, by law, to receive either the FHOG or the Capital Gains Tax exemption for PPOR.
You’re going to be much safer with a 3 month buffer though…
Thanks all. I have spoken to the OSR and my solicitor now. Just to let you all know for future that you just have to move in within 12 months of settlement. Which I can do as my newly renewed lease will be finished by then.
For those who want to move in and then rent it out is another story. A minimum of 3 months will probably get you out of the doghouse with the $7000 grant. Obviously the longer the better. Anything less than 6 months looks suspicious.
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