Eligible for FOHG after rented property out?

Hi guys,

I’ve checked the first home owners grant website and it quotes the following:

An eligible home must be occupied by the applicant(s) as their principal place of residence within 12 months of completion of construction or settlement of the home.
Application for the grant must be made within 12 months of completion of construction or settlement of the home

Based on the wording I’m assuming that if I purchase a property and rent it out say for 6 months and then live in it for 6 months I am still eligible for the FOHG? Is someone able to confirm this.

Also on the same lines if I purchase say a two bedroom unit and live in it and rent one room out, I presume half the interest paid on the loan is tax deductible, and the whole house is CGT exempt on sale?

Thanks in advance for any help.

Damn I’m staying up till 12:30 on a weeknight scouring property I’m getting excited because I’ve saved up enough to make a purchase, but I’m skeptical because of the current status of the property market so I’m doing a lot of research before I buy and double checking my calculations to make sure its a possie.

Tim