Hi There I hope Someone can help me I am about to buy my first home so I get all the grants from the government but the people I’m buying off want to rent back the property from me for 4 or 5 months, question is do I lose anything in the way of grants by renting back to the vendor?
thank youHi,
I note you are in Vic.Assuming u purchase in Vic then u maybe able to get the state handout too. see:www.sro.vic.gov.au.Also u may be eligable for other $ savings (exempt for stamp duty) if u are a concession card holder. or other categories. refer to the site above.To answer your Q you must occupy the property within 12 months of settlement and u must occupy it for a min of 6 months, or u coulld be asked to payback all grants plus more.
You could rent out to the current owner but you will obviously have issues with tax (rental income and impact on CGT) U need to talk to your accountant.
Good luck.
Herb
hrm
Just to clear it up a bit more, you can move in on the last day of the first year following settlement and have to stay for 6 consecutive months. You will not lose any benefits if you do this.
http://www.mortgagepackaging.com.au/index_files/first_home_owners.htm
Robert Bou-Hamdan
Mortgage Adviser
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