Can any one help me on this topic. I am only very young and have made significant gains through stock and my job. Have currently started looking to get into +ve cash flow property. However everytime I want to make a move the government is giving me more incentives to make the damn property my PPOR. With not only the $7,000 grant, but also Carr has thrown away the Stamp duty on entry to the market. Does this apply only to PPOR and if it does, how long do I have to reside there before I can move out and make money on it.
Don’t know what to do? Is it worth even buying a property to live in myself. (Currently renting)
J Dylan
You need to reside in it for 6 months starting in the first 12 months for the FHOG.
I would strongly consider it.
You will also establish it as your home so get a 6 year CGT exemption if you do rent it out.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
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.
You can also apply and probably receive ( deppending on your curcumstances) the $5,000 bonus for first home buyers. If you a planing on purchasing in Victoria.
So with the common grant of $7,000 and the $5,000 bonus and about around $1,000 in stamp duty waived. That can take $13,000 off the deposit of the house.
So therefore you can actaully buy a house with no money down at all, if you are a first home buyer and if it is a property about 40 to 60 thousand!
You can move into the property on the 364th day and rent it until you move in on that day for the 12 months before hand.
So this is what you can do:
1).Buy house put a tenant in it (rent it for 364 day).
2).Then you move into it for the 6 months that you have to live in it (on the 364 th day)!
3). And in Victoria receive up to $13,000 in government grants payed for (provided you qualify). I’m not sure of the exact criteria but I know I qualify.
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Positive Cashflow Property Analysis Calculator.Jaffasoft: You qualify ??? You’ve never owned a property.
Surely the first home owners grant is only for the purchase of your first ever home ?KP
“You qualify ??? You’ve never owned a property.
Surely the first home owners grant is only for the purchase of your first ever home?”That’s right. I’ve never owned a property and or purchased a first home.
I’m the same as a young guy that purchased my grandmothers recently deceased estate at 70k, he is an 18 year old and qualified for the $13,000 grant including the bonus ect.
I know this because my mother was in charge of the administration of the sale of the property and the bloke I know pretty well, because he is the ‘Local Bloke’ Mitre 10 employee.
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Online Positive Cashflow Financial Analysis Calculator.Rob,
As long as you didn’t own any before July 2000.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
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.
Thank you for all your comments. I was amazed to see all the input after coming back from my long weekend.
Does the six month rule apply to all australia or only some states? Also I have a husband. Could I purchase a property in my name only, and in the future purchase in his name only and get away with all concessions legally.
J Dylan
Six month rule applies nationally I believe?
You cannot have two cracks at it with each spouse. Once one owns a property the other is no longer elegible.
There are links to the OSR in every state at this website – you can see what your states legislation is.
http://www.mortgagehunter.com.au/first-home-owner-grant.html
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
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.
Hey Simon, there would be a way to have two cracks….
If they got divorced, and were therefore no longer spouses!! However, it’s not really something I would recommend, unless you now dislike each other….
Cheers
MelNo Mel, I don’t think that would fly. They ask if you have ever been married to someone who owns a property.
Would be worth a call to the OSR if you are in that situation.
From the NSW OSR:
This is the first time you or your spouse/ de facto will receive a grant under the First Home Owner Grant Act 2000 in any State or Territory of Australia.
You and your spouse/de facto have not owned before 1 July 2000 a residential property, jointly, separately or with some other person, in any State or Territory of Australia.
You and your spouse/de facto have not owned on/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.Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
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.
Come on guys – you gotta realise that was said tongue in cheek. However
This is the first time you or your spouse/ de facto will receive a grant under the First Home Owner Grant Act 2000 in any State or Territory of Australia.
You and your spouse/de facto have not owned before 1 July 2000 a residential property, jointly, separately or with some other person, in any State or Territory of Australia.This to me suggests they are only asking about current spouse/de facto’s. Does not say anything about ‘ex’.
Rob, I lived with a guy for 4 years (or was it 6 – don’t know but it wasn’t much fun for most of it?). He owned his own house. We even moved house, and sold up and bought in the time I was with him, but title remained in his name. I still do not consider myself to have ever owned a PPOR!!
Not that I’m eligible for the FHOG anyway as I owned property in 93, but that’s not what my point is!!
Cheers
MelMel,
I think if you were actually married then things might be a little hazier.
As always please contact the OSR if any doubt exists – a phone call is better than either missing out or repaying the FHOG!
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
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.
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