All Topics / Finance / Repayment of FHG

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  • Profile photo of LinarLinar
    Member
    @linar
    Join Date: 2004
    Post Count: 567
    September 9, 2005 - 2:45 pm

    Hi all

    This is really one for the mortgage brokers.

    I have a friend who purchased a property about 3 months ago using the FHG. He has not moved in yet. He is now talking about selling it because it has had a capital gain of about $40 – $50,000. I am trying to convince him not to sell it (and to comply with the legislation by moving into it). Trouble is, he is not financially savvy at all and is always after a quick buck.

    If he sells he will have to repay the FHG. The purchase wasn’t entirely above board and if he is investigated the Govt wouldn’t have to dig very far to find this out.

    My questions are:

    1. Does anyone know of anyone who has had to repay the FHG? If so, were there fines attached?

    2. Do the individuals who have to repay get investigated?

    3. Does anyone know if anyone has ever been charged for making false declarations wrt FHG?

    Please don’t ask why my friend doesn’t just hang on to the property for another 9 months. He just got a big paycheck and I had to plead with him to pay off some of his debt that he is paying interest on at the rate of 29% (yep, you read right), rather than buy a Harley …

    Cheers

    K

    Profile photo of WylieWylie
    Member
    @wylie
    Join Date: 2004
    Post Count: 346
    September 10, 2005 - 2:08 am

    Hi, Don’t know much about FHOG but read this week in a Brisbane paper (I think) that people ARE being caught, having to repay the grant and I think fines are on the agenda as well. I didn’t take too much notice but the numbers of those caught have increased each year for three years. They are getting serious about cheats.

    He has a good friend in you. He should listen to you and move into the house. I would not risk it.

    My thoughts, Wylie.

    Profile photo of brahmsbrahms
    Participant
    @brahms
    Join Date: 2004
    Post Count: 485
    September 10, 2005 - 6:23 am

    very true, Wylie got it spot on – talking with some bank people during the week who confirmed that the investigations are ramping up, people are being caugth out and are having to repay the fhog plus fines.

    i would imagine that the issue of stamp duties would also arise – given that stamps are waived / discounted for first home buyers.

    cheers

    brahms
    Purveyor of Fine Finances
    aka Mortgage Broker Brisbane

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    September 16, 2005 - 11:02 am

    There was a case last year where someone in VIC was ivestigated and found not to have lived in the property for which he claimed the FHOG. He appealed against the decision and lost. He was ordered to repay the FHOG, but nothing was mentioned about the stamp duty discounts.

    I think I made a post about this on this site somewhere.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 4 posts - 1 through 4 (of 4 total)

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