I have a situation which I need some help with.
I currently own an investment property ( in a different state to which I live in), however I have never purchased a home to live in so I am still entitled to my first home owners grant and stamp duty exemption ( correct me if I am wrong).
I have a close friend who is single parent receiving centrelink benefits and earning a part time taxable income ( around $400 a week), who has also never purchased a home to live in, so also entitled to first home buyers grant and stamp duty exemption.
I am pretty confident on our joint incomes we could afford a loan around $250000 ( around the price we intend to purchase)
Its it possible for me to jointly purchase a property with my friend ( around $250000), for her to live in and for us to claim the home buyer grant and stamp duty exemptions. I don’t intend to live in property, however my friend will be. I understand by claiming the grant and exemption I will never be able to claim it again, however this doesn’t worry me.
Does the benefits my friend receive still considered as income on a loan application?
Mortgage brokers or anyone else , I would apprepriate your help.thanks
MatthewMatthew,
I’m not a mortgage broker, but I can answer you pretty simply anyway. Seeing that you already have a place- even if it’s an IP, then you are not entitled to the FHG. So your friend can purchase in her own name, but if yours is on the loan, forget it.
kay henry
kay henry
I was pretty certain from previous advice and other posts on this forum that if you purchased an investment property but never lived in it you were still entitled to FHOG.
matthew
I only wish that was the case, matthew. When my partner and I bought our first IP’s, that knocked out our opportunity to get the FHOG. Had we known that then, we might have made different choices. But IP’s have their own benefits anyway, which probably make up for the FHOG, so no point crying over spilt milk
Here’s the info from the fhog website:
” # To qualify for assistance, neither the applicant nor their spouse (or de facto) must have owned a home prior to 1 July 2000, either jointly, separately or with some other person.
# Neither the applicant nor their spouse (or de facto) must have owned and occupied a home after 1 July 2000.”From the above, “home” means any property, including an IP.
kay henry
Kay
I am certain I had read previous post by mortgage brokers on this foru, who advise we are still entitled to FHOG, even though we own a IP.I have attempted to look for the postings, however topic’s only go as far as june.
Here is a section from Mortgage Hunter’s web site;
Yes, you may be eligible for the First Home Owners Grant (FHOG) if you and your partner:
have never owned and occupied a home before
have never owned an investment property before 1 July 2000 – ( I only purchase a IP this year)
are purchasing a home
intend occupying that home within the first 12 months
are a permanent resident of Australia
are at least 16 years of age.Uncivilised,
If you bought your IP after Jul 2000 then you can buy a home and get the FHOG.
If you are aboth entitled then you can jointly buy the property.
Please post any additional questions.
I would urge you to get your serviceability checked out as well by a banker or broker.
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.
Simon, Ihad no clue that you could buy an IP and claim the FHOG- at any time. Have the rules changed? Doesn;t that change the intention of the FHOG? To give a grant to people who have not had an IP or PPOR at all?
kay henry
Kay,
The legislation specifies:
have never owned and occupied a home before
have never owned an investment property before 1 July 2000 – ( I only purchase a IP this year)
are purchasing a home
intend occupying that home within the first 12 months
are a permanent resident of Australia
are at least 16 years of age.It changed a while back.
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.
So Simon, an investor could have purchased 2, or 5 or 10 IP’s and still get the FHOG?
kay henry
As long as he has neither occupied them nor owned them before Jul 2000.
Hope this might be good news for you.
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.
Naaa Simon, not good news for me personally, but it might be good news for newer investors. Thanks for the info
kay henry
Simon and Kay
I did some research today nad as you said I am entitled to the FHOG , however sadly I not entitled to the stamp duty exemption as I have a IP. It seems a little unfair that if you purchase an IP first you are not entitled to stamp duty exemption.
matthew
uncivilised, I think it’s great that you can get the FHOG. dunno what the govt is thinking of giving it to investors who already have properties, but there you have it. Take it happily, uncivilised, before they fix the loophole, I say!
:o)
kay henry
kay
Yes?
kay henry
kay
I think we should also be entitled to the stamp duty exemption as well. Why shouldn’t property investors still be entitled to both grants, it not like we are double dipping, you can only claim the grants once.
One day us property investors might also purchase a first home, its not like it is any easier for us, I saved extremely hard to purchase my first IP. I only purchased a IP because there is no way I could afford to purchase in the area I live, unless I continued to save for the next 5 years and hope prices didn’t continue to increase.
You should not be disadvantgaed because you decide to purchase an IP before you purchase your first home. Why should people who purchase a home first , then decide to become property investors be treated differently to people who invest first.
I personally think they should change the grant to anyone who purchases there first property, whether IP or first home.
Thats just my view.Matthew
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