Hey,
I'm looking to go halves in a house with my mum.
I am eligible for the first home buyers but she is not
Is there anyway to go halves with her and still get my first home buyers grant?
Oh I would be buying in WA if that makes a difference
Also if you own a block and subdivide it, are you able to get it re-subdivided with different measurements?
Thanks
Hi Howard
In answer to your first question it is a simple NO.
If either party is ineligible for the FHOG then that person cannot be a party to the Title.
With regards to your 2nd question i think you are asking if you receive an approval to subdivide the property can you at a later date change the configuration on the lot sizes. Answer is Yes if the revised size complies with the Town plan but is likely to mean a new application.
If i have misread or misunderstood your question please repost and clarify.
Richard Taylor | Australia's leading private lender
Hey Richard,
Thanks for the help
Say I buy a 900sqm block and divide it so its 500sqm and 400sqm
If I sold the smaller block can I re subdivide it so its 450sqm and 450sqm with approval from the person who owns the other block?I must be a bit slow.
Why would you subdivide into 400 / 500 metres first rather than just straight into 450 / 450.
If you mean if you buy it as 400 / 500 first up and want to change then YES you can subject to the local authority requirements.Richard Taylor | Australia's leading private lender
Well with the house on the land at the moment the most I can sub divide is 600/300 while keeping the old house there
My mum was going to buy the house and land then subdivide it into 600/300 and then let me buy the house and she would keep the 300sqm land. When I am ready I would knock the house down and then re subdivide the land into 450/450.
Buying house and land means I am eligible for the 30% government shared equity whcih I would use to buy the house and land off my mum which she would give me for a good price (as if it was a house on 450sqm of land, not the 650). I am receiving a lump sum of money in 2 years time and I will use that to buy the 30% equity that the government owns.
Hope that makes sense
Yes i guess it can be done however seems like a very complicated way of buying a property to me.
There will be lots of stamp duty and CGT to be paid all round.
Richard Taylor | Australia's leading private lender
Try not to let the emotion that you seem to have attached to this particular house influence your purchase. As Richard suggests, your proposal is a very messy way to purchase a property. Have you explored the option of you purchasing with your Mum as guarentor. Mind you, that comes with its own new set of potential problems.
Thinking outside the box, can you get an extended settlement with vendors permission to apply or the subdivision, obviously with a clause that contract is conditional upon approval. Stay with me here……..if this pans out, you could have a presale of the subdivided land to your Mum awaiting the final subdivision sign off. An unconditional sale of the subdivided land would help your finance application. It would savedouble stamp duty and depending on when the subdivision comes through, you would be closer to you inheritance. You would most likely be subject to CGT on the land so if this scenario appeals run it past an accountant to ensure it is worthwhile.
All the best
Mick.Actually you can purchase a property with someone else and apply for the FHOG.
What you need is proof that you are going to subdivide the land and keep the existing house yourself. You will have to wait until the plans for the subdivision are lodged with council before you apply for the FHOG.
With regards to re-subdividing the property in the future there are too many variables to confirm if it will be allowed. You would be best contacting the planning department at your council…
Thanks for that,
Just not to sure if I will be able to sub divide and keep the house on the land may be taking to much of the block up
Dont want to disagree with this comment but it is clearly incorrect.
Actually you can purchase a property with someone else and apply for the FHOG. What you need is proof that you are going to subdivide the land and keep the existing house yourself. You will have to wait until the plans for the subdivision are lodged with council before you apply for the FHOG.
Irrespective of when you lodge the FHOG application the Title will have still been in Joint names and you will fail the qualifying test for the Federal Grant.
Richard Taylor | Australia's leading private lender
Its a shame someone would state that i am clearly incorrect without checking it out for themself.
A close friend of mine recently purchased a house with her father. Her intentions are to live in the house while her father builds a house on the rear of the block and sells it.
My suggestion is that you contact the State Revenue Office for yourself and you will find out the truth.
Yes. Don't ever live on the property, just rent it out. That way you don't get the FHOG on this property but you can still get the FHOG later on a property you buy to live in.
The Grant is a Federally Approved Grant which is adminstered by the States.
The legislation is quiet clear
Are you eligible to receive the grant?
To be eligible to receive the grant, the following criteria must be satisfied:
- You, your spouse/partner or any party to the Title must not have received a grant in any State or Territory of Australia.
- You, your spouse/partner or any party to the Title must not have owned residential property, either jointly, separately or with some other person prior to 1 July 2000, in ANY State or Territory of Australia
- You, your spouse/partner or any party to the Title must not have occupied for a continuous period of at least 6 months, a residential property in which either of you acquired a relevant interest on or after 1 July 2000 in any State or Territory of Australia.
- You must be a natural person (not a company) and at least 18 years of age at the time of settlement or completion of construction
The legislation then goes on:
Who is required to be an applicant?
All persons who are or will be owners of the home being purchased or built are required to be applicants. An owner of a home is a person who holds or will hold a relevant interest in the land on which the home is situated or being built.
Most commonly, you will hold a relevant interest in a property if you are registered on title as the owner or hold an interest as purchaser under a terms contract. It does not include the interest of either a trustee or a beneficiary under a trust (apart from a beneficiary under a legal disability).
Furthermore a call to the OSR this afternoon has clarified the position and it the answer is a big fat NO.
So Shanza before you offer your free advice my suggestion is try and obtain accurate information as unfortunately where misleading and accurate information is offered some people tend to get hurt.
CD has of course made a very valid point.
Richard Taylor | Australia's leading private lender
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