I am looking at getting into the =ve cashflow investments without yet buying my first home. Is there a way of getting the grant which i am eligble for without using the property as my PPoR?How long must i stay in the property to retain the grant?
Thanks,
Dale Missen
No legal way my friend.
Current changes tothe policies indicate you will need to be able to prove residency for a 6 month period starting within the first 12 months.
Check out
http://www.mortgagehunter.com.au/first-home-owner-grant.html
Regards,
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.
South Australia and Western Australia don’t seem to have changed the laws to introduce the 6 month minimum residency period. But I expect that they will follow suit with the other States shortly.
When you apply for the FHOG, you have to make a written statement that you intent to reside in the property as your PPOR within 12 months.
The States apparently conduct checks on most people who receive the grant.
It’s a $20,000 fine and a criminal conviction for misleading the Commonwealth. The Commissioner of State Revenue can also impose a discretionary $7,000 fine (no trial needed), on top of making you repay the FHOG. If you don’t pay up, they have the power to force the sale of your property to recover the money. Their right to the money overrides all mortgages and other encumbrances, which will tick off your bank and really hurt your credit rating.
If you don’t intend to live in the property as your PPOR, you’re better off saving up $7,000 instead. Much less risk, and builds good saving habits.
Cheers
EDIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…
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