All Topics / Creative Investing / FHOG with Wraps in QLD

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  • Profile photo of bmudiebmudie
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    @bmudie
    Join Date: 2002
    Post Count: 13
    July 2, 2007 - 7:02 am

    Hi all,

    Can anyone please confirm what the deal is for the First Home Owners Grant under an instalment contract (Wrap) in QLD..? From what I can see, it looks like they only get it after being in the house for 12 months…?

    Cheers,
    Brett

    Profile photo of Paul DobsonPaul Dobson
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    @pauldobson
    Join Date: 2003
    Post Count: 1,196
    July 2, 2007 - 11:29 am

    Hi Brett

    In Qld, when purchasing a property with an Instalment Sales Contract, the FHOG is payable when the:

    • contract has been operating for one year
    • purchaser has paid at least an amount equal to the grant or 10 per cent of the purchase price, whichever is greater
    • purchaser is not in default of the contract, and
    • purchaser has occupied the home as their principal place of residence

    Cheers,  Paul 

    Paul Dobson | Vendor Finance Institute
    http://www.vendorfinanceinstitute.com.au
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    Profile photo of bmudiebmudie
    Participant
    @bmudie
    Join Date: 2002
    Post Count: 13
    July 2, 2007 - 12:09 pm

    Thanks Paul..

    Just to clarify… Do all conditions have to be met?

    IE – Does this mean that after 12 months, on a $300k property they have to have paid off $30k of the principle before they can receive it? I just can't work this out… On normal sort of loan terms, you'd only pay a few grand off in principle over the first year.

    To my reckoning [and i'd very happily be wrong here!] this would mean that QLD wrap buyers can pretty much forget about using the FHOG in paying down equity until they're basically in a position to refinance out anyway….??

    Thanks again,
    Brett

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,024
    July 2, 2007 - 12:50 pm

    Yes Brett

    All of the conditions need to be met. Having done one or two wraps in Qld i can tell you the legislation changed in 2002.

    In some cases 10% of the installment contract maybe not be repaid until say the 18th month or longer depending on the mark up and the term of the loan. As a wrapper dont rely on the FHOG to pay down your loan.

    Richard Taylor | Australia's leading private lender

    Profile photo of bmudiebmudie
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    @bmudie
    Join Date: 2002
    Post Count: 13
    July 2, 2007 - 11:05 pm

    Thanks guys, appreciate your comments. I find that ruling quite unfair for 1st home buyers, meaning they cannot use the FHOG to pay down principle and gain equity like any other mortgagee… Ah well… Them's the breaks I s'pose…

    Happy FY08 to all! 
    Cheers,
    Brett

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    July 3, 2007 - 1:53 am

    Brett

    There is always other States to consider. Vic offers $10K FHOG and prices are probably comparable with SE Qld.

    Richard Taylor | Australia's leading private lender

Viewing 6 posts - 1 through 6 (of 6 total)

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