Hey all,
Just a quick couple of scenarios, I am not sure about the reprocussions of each.
Scenario 1:
A FHB purchases a property(unit) off the plan, with completion due 12 months later. All unit sell in the block very quickly and there is a real capital gain before completion of the property. If our FHB sells that contract before completion of the development, will they technically ever be owning a property and thus still be eligible for the FHB Grant on a subsequent purchase? Is this even possible or in this instance would settlement of the original contract occur on completion of the development and the subsequent contract then be activated??Scenario 2:
A FHB purchases in a scenario the reverse of the last, all units in development sold, Our FHB purchases a previously bought unit(before completion of the development) with settlement occurring on completion of the development. Is our FHB then only entitled to a FHBG reflecting that of a pre-existing property or is it treated as a 'new' property with the full grant benefits. ie $7k Vs $14k for a new build.I guess ultimately the underlying question is as follows: Does ownership ever really occur if you purchase a unit off the plan and flip/on-sell before completion of the development?
Any help would be greatly appreciated.
Cheers,
Mick
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