1.Do we still get them?
2.Do we get them if the property will be used for investing to rent?
3.How much do we get?
4.Can we get it and use it to help pay for the deposit, or even to help pay for the fees associated with buying(like stamp duty).So many questions, So much anticipation.
No you won’t get a FHOG if you intend to rent the property out.
On the plus side, if you buy a property that is an investment, ie you intend to receive income from it and you DO NOT live in it at all, then
you’ll be able to claim a FHOG when you eventually do move into a property that is your PPOR.
Hi there.
When it comes to first home owners grant as I understand it from speaking to one of my morgage brokers you can use the first home owners grant to pay for all the costs and or deposit .
at the moment it is $7000 + $3000 of additional fund of some sort.
So all up it’s $10000 .
You have to know what you will be doing in the future with you property as there are diferent types of loans for diferent situations.
If you buy home using the grant you have to move in within 12 months and then live in it for at least six months.
After that you can arange to sell or rent it out if you like.
regards
[headphone]
PeterThanks guys. Hmm, thats not good that I cant get it with my investment property that I will be renting out. hmm…..
Hello DraconisV
Here is a link to information on the FHOG. From there you can also link to a site with information specific to the state you live in.
I had a quick look but can’t find the $3000 you mentioned Peter but that could be my fault and also may be state dependent. I only looked quickly at NSW.
A big advantage if you get the FHOG is that you don’t need to pay or get a discount on stamp duty at puchase. This is dependent on the state you are in and the price of the house you buy.
Hope this helps [smiling]
Elka
Originally posted by DraconisV:Thanks guys. Hmm, thats not good that I cant get it with my investment property that I will be renting out. hmm…..
Hi,
Stamp Duty, for example, on $180K FPPR is 0.00 in Brisbane. Stamp Duty on $180K IP is $4950.00, not sure about other states.For example, if someone finally decide to buy FPPR and motivated by getting FHOG found suitable house, got a loan (during a process, after building inspection he shows the quotation for list of necessary repairs and getting 80% from future expecting value of refreshed and fixed house, not from purchase price) plus FHOG. He moving in ASPS and happily making the home in better way he can. After few months that … disappointed for some reasons and with his depressions decides to sell and move out in better area. Suddenly, after selling he even got unexpected nice profit for a bit more when 6 month.
Is it believable?How long(IN NSW) do you need to be living in this place to get the FHOG before you can then rent it out.
As I am planning on getting a dump and doing it up over 6months. And then i’ll be ready to rent it out.
With the FHOG and the PPOR someone said that stamp duty costs nothing at all. ok, so with that in mind do you still get anything else. Or is it just a free stamp duty thing.
In NSW, you will get a $7,000 grant and stamp duty concessions – stamp duty is normally zero for a FPPR, however I think you may still have to pay some SD if the property is over a certain value. Probably not something you will have to worry about if you are looking at buying a dump.
To get the FHOG you must move into the property within the first 12 months of ownership, and then live in it for a continual six month period. If you are looking at spending 6 months doing the place up, you could organise to have all your mail and bills sent to the property until you can actually live in it, meaning you will have something to show you were living at the address longer than you actually were…
I know a few people who have done/doing this, but be careful because they will do more thorough checks from time to time…
All the best,
SpankyAge doesn’t negate effort – you can never be too young or too old.
I have looked into this..make sure for the first six months you have phone, utilities, car registration at this property.
Yeah I think u can only get the grant if you are going to live in it so renting it to some1 or if its just a vacant block of land u wont get it. I recently bought a block of land and emailed them to ask them about the grant and they told me that coz its a block of land I cant claim it but when i show them a building contract to build a house on it I can get it then
Hi Guys
I am looking in Melb to buy my first PPOR, just a cheap 2bd to reno and live in for 6mths or so… From my understanding I will get the FHOG $7000 (from Howard) and then $3000 (from Bracks, only in Vic) also…
Have to move in within 12mths then live in for at least 6mths…
I have to pay stamp duty I believe????
Cheers Sarah
hmm.
I’ve been hearing about this word ‘settlement’ a dam lot and theres like settlement periods of like 30days,6 months whatever. What does that really mean??(completely). And can it have anything to do with the FHOG.
Christopher.
Originally posted by DraconisV:hmm.
I’ve been hearing about this word ‘settlement’ a dam lot and theres like settlement periods of like 30days,6 months whatever. What does that really mean??(completely). And can it have anything to do with the FHOG.
Christopher.
Settlement is the period between you agreeing to buy a property and actually owning it. A number of checks and changes need to be made and most times a settlement period is 4-6 weeks but can be longer or shorter as required.
it has no bearing on the FHOG.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
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.
Hi all
I just want to add something to this, I purchase apartments reno them and re sell. I just sold one and the buyers were after finance for around 90% they were needing the FHOG also, they got knocked back because the property was under 50 sq meters.
Now I did not get the full story so I do not know if it was a stipulation of Wizard Home Loans or for the actual grant. This tid bit may be of interest to those looking at apartments.[biggrin]celeste
Originally posted by celeste:Hi all
I just want to add something to this, I purchase apartments reno them and re sell. I just sold one and the buyers were after finance for around 90% they were needing the FHOG also, they got knocked back because the property was under 50 sq meters.
Now I did not get the full story so I do not know if it was a stipulation of Wizard Home Loans or for the actual grant. This tid bit may be of interest to those looking at apartments.[biggrin]celeste
Few lenders will do 90% LVR on a dwelling smaller than 50sqm. I know of none that will do a reasonable rate.
Size has nothing to do with FHOG.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
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 in this settlement period can you like move in and start renovating, and start building up the required 6 months needed?
Christopher.
Ownership of the property doesn’t begin until the settlement period has ceased. The settlement period is generally used for the solicitors to (hopefully) agree on any contractual changes and for building and pest inspections etc. (if not already) to be done.
I stand corrected if wrong, but this period doesn’t count as part of the 6 months required.
GM
dam. but is the house yours(i know you ownt own it as yet) but are you allowed to move in/reno it up.
Whats the advantage of having a huge settlement period(like 6months or so, i heard it somewhere)?Christopher.
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