I'm potentially bidding on a property in about a week as an IP out of town. If it goes ahead it will be my first property purchase but seeing as i won't be using it as a PPOR i will not be able to make use of the first home owners grant on it or any future purchase. Is there a way i can structure this so that the purchase can be in a company or trust that i control that, for the purposes of FHOG, won't be a purchase in my name?
I'm dropping the contract of sale off to a lawyer on monday and i had intended to ask them about it, but some insight going in would be helpful. Obviously a week before auction isn't an ideal time to be thinking about this but if there is something i can do to avoid losing FHOG i want to know. Thanks a lot for reading this, and any responses.
hey there Else,
Im not sure what state youre in, but in SA i am under the impression that you are able to purchase a house as an IP, whilst maintaining your ability to utilise the FHOG, at a later date. To find out for sure, you should check for sure with the govt. agency in your state that issues the FHOG, in SA this is revenueSA. If they do confirm that you may still use the FHOG after buying an IP, get this in writing so that it is binding, and so they may not change their mind and effectively, screw you.
Regards,
JamesThanks for replying, James. I actually meant to reply to my own thread in case anyone else read it. My accountant said you could by residential property as an IP without preventing yourself from getting FHOG in future, and this was backed up by the conveyancer I've been dealing with.
I'm in NSW. She sent me a link to the eligibility requirements. I'd only seen a page on the federal site about it, which i recall as being a bit more vague about eligibility and which had left me thinking I wouldn't be eligible.
http://www.osr.nsw.gov.au/pls/portal/url/page/osrhome/tax_prof/firsthome/fhogs#a2
That's all true enough – as long as you don't occupy this property you will still be entitled to the grant when you duy buy your first home.
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