I have a question… If anyone could help shed some light on it I would greatly appreciate it.
Is it possible to set up a trust, purchase an investment property in the trust's name and still be eligible for the first home buyers grant later if I was to purchase a home in my own name?
And, is it possible to do so in overseas countries if not Australia, eg. purchase a property in another country in a tursts name and later buy a home in my own name.
Thank you very much for your help
The short answer is YES.
It is OK to set up witht he Trust structure, as Trusts are not eligible for the grant. As long as the trust is the Title holder (or the Trustee a.t.f The trust), then there is no way you could have previously applied for the grant and thus you are still eligible.
The same goes for the overseas property. The Australian First Home Owners Grant is a one off payment, and will only apply the first time you (as an individual) appear on the title of an owner occupied property in Australia. (You are also eligible for the grant if you purchase a property and rent it out immediately, as long as it is your intention to Occupy the property within 6 months of purchase).I hope this helps.
I think you will find that it will be a case by case basis. I have done what your are looking to do, purchased an investment property through a trust. I have received numerous different answers from different professionals (accounts, solicitors etc) all came back with a different answer. When it comes time to apply for the FHOG you will know then if you are going to get it or not.
Hope that helps.
Unfortunately Matt, this in not true. It is certainly not case by case. The Office of State Revenus has fixed rules, that leave no room for interpretation. There is no 'Case by case'.
Also, the quality of the answer is relative to the quality of the question. If you got different answers, you are not asking the right thing? I would also reccomend asking the 'right person' ie someone that actually knows. Why ask an accountant, or a solicitor for that matter?
Call the Office of State Revenue and ask.
You don't ask a dentist how to fix your car, do you? Why ask an accountant a FHOG question?I know for a fact that I asked the right question, and the professionals that I asked should have all been up-to-date on how this works to properly service their clients, thats why they are paid the big bucks!
Just to clarify when I said case by case I didn't mean that they may be more leniant etc on different people I meant submit it and hope that it goes through.
I could almost guarentee that if you called the OSR and spoke to 5 different people you would get 5 different answers. Which brings us back to my last sentence.
I have to agree with Tim it is a clear cut YES and in fact is one of the qualifying questions on most of the FHOG application forms.
The Grant is a Federal scheme administered by the individual States.
It is not a grey area unless you are buying under Vendor terms and then this varies from State. (Here even though you are not getting Title to the property until the final installment is paid you are still entitled to receive the Grant just the date of payment will vary from Possession date to 12 months later etc )
Richard Taylor | Australia's leading private lender
all quetions answered here:
Thanks for the link!
OSR wrote:You and your spouse must not have previously held an interest in residential property in Australia on or after 1 July 2000 in which you or your spouse have resided (Ownership of an investment property after 1 July 2000 will not prevent you from obtaining the Grant provided you have NOT lived in the home)
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