Will we Loose our home owners grant if investing with 3 people??

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r1trackday
Member
@r1trackday
Join Date: 2007
Post Count: 25
March 25, 2008 - 7:52 am
Hi all….
I am getting ready to move into a 3 way venture with my sister and partner with an investment property.
The question is: The sister will be living in the house as her PPOR. She should therefore be able to use her "FHOG". Thats fine…
Will my partner and i then be able to use OUR "FHOG" for the investment property as well? and if not, will we then lose the chance of using it at a later date to purchace our own PPOR? (Will it be taken away from us because we have bought into the investment house?)
PaulineM
Member
@paulinem
Join Date: 2008
Post Count: 7
March 25, 2008 - 9:22 am
Hi there.

In Qld, unfortunately, you and your partner won’t be eligible for the FHOG unless you live in the property as a PPOR and then to make it worse……you can’t get it later for a PPOR as you would have already purchased a property!!

If this is your sisters first home and she will be living in it, then she will be okay. If you want to read up about all the details then go to http://www.osr.qld.gov.au/fhog/first-home-owner-grant/index.shtml and read all about it.

if you arent in Qld, then there should be a similar site for each state.

Good luck,

PaulineM
Jeff Johnson
Member
@jeff-johnson
Join Date: 2008
Post Count: 50
March 25, 2008 - 9:38 am
Hello r1trackday,
There seems to be a few flaws with your scheme, best do some research before you sign on the dotted line. See website link below.
I am of the understanding that you will not be able to get the grant if you buy into your sisters house. I am unsure whether she would qualify either.
For eligibility for the grant- All owners of the home must be an applicant on the Grant application.
Under disqualifying- where there is an arrangement the sole or main purpose of which is to obtain the grant rather than acquire a home.
They can make you repay it if they find out there is anything sus , so best tread carefully.
I doubt it would be legal for you to even have a side arrangement with your sis that you help with deposit , costs and repayments and get a cut when she sells. She will need to qualify for finance on her own though and will neeed to live there for at least six months within twelve months of purchase. So a tenanted property can be bought and see the lease out prior to living in as long as the lease has less than twelve months to run. Then you might have enough to do same with partner and then partner buy a home. This will depend on whether you have any other joint ownership or bills with your partner.
The grant is basically a one off per household(couples, spouses, defactos) to buy a home. I never got it because my wife had previously owned a property years ago with her ex.

The grant has changed a few times so keep up to date on their website and it varies from state to state.
I am of the opinion that they won't be likely to change the rules in the near future.
I hope this helps,
And i wish you well in getting your wishes
http://www.firsthome.gov.au/