G'day people.
Im in a defacto relationship (soon to hopeefully be engaged). I have a mortgage in my name for the property we are living in.
My partner & I wish to purchase a villa for investment & lease out(possibly even lease our current property & move into the 2nd purchased property). Now the government has increased the FHOG to $14000, would it be best for my partner to purchase the 2nd property in her name?
Can the 2nd property mortgage be in 2 names and still be eligible for the 14K grant?
Im assuming if she puts her name only and we later wish to put my name on the mortgage/property its going to be costly?
Thanks in advance for any help you can provide.
I believe the FHOG is only available once per couple, including defactos.
If you qualify still, then the requirements for the grant are only concerned with the names on title, the names on the loan don't matter. But a bank will usually only allow a name on the loan that is not on title if it is a spouse/defacto.
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
Hi Terry, Thanks for your reply. Whats i should have said is that i purchased the 1st property when i was single. Ive been living to gether with my partner for approx 1 year so we arent technically defacto yet (minimum 2 years living together to qualify as a defacto). so we would both still be classed as single but soon to be defacto within about a year. Do you think this would change anything?
Eg would the best option be for my partner to purchase the 2nd home as she would still qualify for the fhog and could the grant money be used as a deposit?
G'day Ozyboy84,
I am too lazy to research the FHOG Act again but I believe that your defacto parter is eligible to apply for the FHOG. Although the Acts Interpretation Act defines you as defacto, the FHOG Act further defines a defacto relationship as having resided together for 2 years. I can't remember if becoming engaged will throw a spanner in the works (have a read of the act as the misses might just have to wait another year.)
I ended up going guarantor for our loan but I wish I was on the loan as this would make the transition smoother for tax purposes. Unfortunately the banks, financial advisors, OSR were not helpful to our cause, and a bank knocked back a loan application because it 'felt funny.' The bank manager said yes but head office said no. We sent all the relevant legislation down to them with no success.This decision stuffed us around a great deal. I would suggest that you consider completing your own FHOG application and politely say to the bank that you wish to do it yourself as to not complicate things.
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