I bought my 1st and only property a few years ago with a mate and used the FHOG to assist with the purchase.
We knew that you had to live in it for a certain time but with some poor advice and lack of research we took a punt and left it rented out. The result was a letter in the mail having to pay back the grant along with a fine.
I thought i heard somewhere recently that people in this position can reapply for grant next time. How will this position myself and my partner who are looking to purchase a house soon. She has never owned or bought a property so will this mean that she is ineligible. We live in NSW.
Any assistance would be appreciatedyour punt = fraud hence the fine.
Normally, a person that repays the FHOG due to a change in plans can reapply when they do buy another PPOR.
I don’t know what the options are in your situation where you were caught defrauding the Commonwealth.
I think you need to talk to the FHOG people – the contact details should be on the letters you have had.
Out of interest can you post the result and also let us know the sort of fine imposed by them for this?
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[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.
Thanks for your help Simon.
From memory the fine was $1400 plus the $7K to pay back. We did write a letter explaining our circumstances (the friend who i bought with was going to occupy the property until his circumstances changed with a relationship / birth of his child).The ‘punt’ we took was naively listening to someone who said there were ways of getting around it such as having mail diverted,etc.
We accepted the decision as we were stupid to listen to the first piece of advice we wanted to hear.As you have paid back the FHOG and your property has been classified as an investment property. You still be eligible for FHOG for when you buy your first property of residence. Your partner should also be eligible for the grant.
For more information go to.
Absolute Wealth Education
Order Your Free Jamie McIntyre Wealth DVDTo receive the FHOG, how long would you have to live in the house before allowed to put up fo rent. 6-12 months?
Six months. It has to start within the first 12 months of your ownership.
This allows you to honour an existing tenancy if you buy a property with a tenant.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[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 Guys, Just adding on to this, i am looking a buying a house to live in with my wife. To be true i have no issues whether we buy the property in my name or both of us’s name. If we stay in the house that i am buying now and later buy another house (after 12 months) in my wife’s name, stay there for 6 months, would she be able to get the FHOG?
No. As a couple you can only use it once.
If she leaves you she will still be deemed as having “owned” a home – even if her name wasn’t on title.
Simon Macks
Residential and Commercial Finance Broker
[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.
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