I have purchased a property which I intended to live in. However, I changed my mind on the settlement date that I will rent it out. I have already got the FHOG ($7000.00) and I am aware that in order to rent it out, I need to live there at least 6 months. At the moment, I pretend that I live there ,i.e. all the bills are under my name. But I live with my parents.
My question is how does the government know if I live there. Do they look at the bills? What if the bills do not have much $$,i.e. gas bill < $5/monh, etc.?
Can anyone help me with this? Thanks.
TommyWhy don’t you move in and rent the spare rooms out for 6 months. Then rent the whole house.
That way you are not committing fraud.
Or return the FHOG and claim it for the next PPOR.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Doesn’t the FHOG only apply to your first purchase provided it is a PPOR ??
What I mean is, if you purchase an IP first, then you are not entitled to claim the FHOG for a subsequent property even if you intend to live in it.KP
Nope.
Check it out at
http://www.mortgagehunter.com.au/first-home-owner-grant.html
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks a lot for your help.
Your idea about moving in and sharing the other two rooms in the first 6 months is good. I did not realise this. However, it is hard to find a person to share with me because my house is not in a good location. Furthermore, while not being able to find a person to share, it would cost me more $$ to live by myself. My budget is very tight and that’s why I have to live with my parents. It was my mistake to buy this property and now I am in a LOSE-LOSE situation.
TommyYou bought in a bad location?
Is it too late to get out of this?
Al lthe best,
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.
Inially, I & my gf planned to get married some time this year. So I decided to buy this property. It is good to live in, but not a good investment property. We broke up just before the settlement date. So I had to pay everything with my money. I desperately needed the FHOG at that time.
To rent out the whole house, it is not hard. I can find a tennant in a month. However, to share with someone is not easy.
Only 3 more months to go … that’s when I can rent it out. The rent money then can help cover some of the cost.
To get out of this, I will have to sell it. However, to sell it now, I will make a loss for sure because the price does not go up much since I bought it.
I am planning to rent it out for a few years and hopefully the capital gain will help me get break-even.
Do you have any other ideas about how to get out of this? Thanks.
TommyUmm….i thought that there is no time frame on how long you have to live it a home when FHOG is concerned. i.e. even if its for a day. The Government has made no reference to the time span. Well thats what my mortgage broker told me?
if you spoke to your broker prior to January this year your info is correct, if after January very wrong. Check out your states treasury or state revenue office web site for the requirements.
cheers
brahms
If you don’t ask, the answer is no!!
[black]I had no idea that it had changed! Great! My broker had told me that about a year ago when i got my construction loan. My house is just about finsihed, hand over is next week…so that now means i must live in it for a min of 6mths! Thanks so much for your advise…i probably would never have known otherwise! That kinda puts all my plans out of wack now…..
You must be logged in to reply to this topic. If you don't have an account, you can register here.
