One of the rules in obtaining the FHOG is that you must live in the property for a continuous 6 month period(which is during the first 12 months).
Alot of people (and myself included) would want the FHOG to help with the deposit (to also lower LMI) but don’t want to have to live in the property for this time period (due to holding costs,etc..though you could do a reno, 6 months is a long time).
So what i’m saying here is that you claim the FHOG, and intend on living in the property in the last 6 months of the first 12 months, and when it comes to the time when you have to move in, you say to the ATO that you don’t want to move in and here is your FHOG back.
Now over that 6 months I would have to save extra money(total 7K) so that I can repay the ATO, so I would be tight on cashflow for that period.
Would this work?
Could you claim the FHOG later?Cheers
Chris.I don't know! My challenge to you DraconisV – call your nearest State Revenue Office and ask them. Take a few notes and get back to us here. It would be interesting to hear their response. I'd imagine (Note: IANAL) that if you bought it with no intention of living in it you'd be committing fraud, but it would be next to impossible for them to prove that you hadn't simply changed your intention (providing you paid the money back as soon as you changed your intention, not when they busted you for cheating).
Give them a call and ask.
F. [cowboy2]
That is, if the ATO will take the money back.
Thanks Foundation. I’ll contact the office and see what happens.
It seems like what I am proposing is fraud, it doesn’t make me feel good that this is the truth. hmm, if they can’t catch me(small chance) then why not give it a go.
uh, i dont understand, i’m sure the ATO would take the money back, how can they not, would I be obliged to live there for 6 months no matter what. They have to take the money? dont they??
Chris.
DraconisV wrote:It seems like what I am proposing is fraud, it doesn't make me feel good that this is the truth. hmm, if they can't catch me(small chance) then why not give it a go.Hear Hear Kiera!!!!
I've said it before, and will say it again……It is the first HOME OWNERS grant. When there are plenty of people who have previously owned a home and have never recived any , or limited govt assistance, since sold, and can now not get back into the market, as are not eligible for FHOG, and their are others busting a valve to save for a deposit, or settle for a property less than ideal as a stepping stone, it makes me seriosly want to BARF when people try to abuse or rort the system to buy…..investments. Nuff said.
Thank you everyone for your posts. I realise it is constructive criticism, so i am not taking it personal.
You are true Kiera it is hard to get a foot in the door, but you are also correct in saying that we all want to suceed but not stoop to the level of fraud.
Maybe being eligible for the FHOG later if i don’t live in my IP sounds good. I will not do this.
Thanks everyone,
Chris.Hi Chris
I agree with all and especially Keira. Please don't take it if you are not eligible for it, it would not be worth it if you got in trouble for it. I wish you all the best in pursuing your investment goals,
Leilah
Chris,
If you are that desparate for money, why not get a part timer on the weekend? Better still, why not join the Army reserve. The income is tax free, you will be helping the country and it would not take long to save the $7000 you say you need to buy.
This is legal and you can have fun doing it.
JodieIn saying all that, what processes are involved when it comes to selling a FHOG house?
Ie; At what stage in the sale do the ATO become involved? I imagine they are after some proof of occupation from anyone who sells a house that has been under the FHOG scheme?
What do they generally ask for?
Yes, I am contemplating a sale and am curious and want to be prepared.
Cheers allDon't forget, the ATO has nothing to do with the FHOG, it is administered by the OSR in your state. Office of State Revenue.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Cheers Terry, thanks for that. I'll chase it up with them.
Nigel
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