FHOG grant problem.
Here is the story.
I was interstate so my parents went to the auction of a property I wanted. They liked it and purchased it for me and signed as nominees. The place has now been settled and the title is now in my name.
My parents took the loan under their own name and over their existing property and paid the vendor with that loan. So essentially now the house is all cash under my name and my parents have to repay the loan. Essentially I have no obligation to make repayments legally. However, I will be making all repayments to my parents and we are writing up a loan agreement using this link,
https://lawcentral.com.au/CreateDoc/createlink.asp?docId=28
I am now living in this house.However, we encountered a problem with the State Revenue Office. Initially, they provided us with the 7k FHOG and subtracted if from the Stamp Duty.
Then my conveyance called me saying the SRO want a Cheque for 7k and will then send a 7k cheque to your name once its settled under your name. Well, we did that and now its settled and we still have not received the 7k.
The rules don’t say anywhere that you can’t do what I have outlined. I am a first home owner and the property is in my name and I will live in it for 6 months, therefore am I not entitled to the 7k.I can understand that they may think something dodgy is going on as someone my age has a 800k property but regardless I will be making all repayments and its my first home. Is there any reason why I would not be entitled to it? I have read the rules and cant seem to find one.
It does not say anywhere were the source of money has to come from for you to receive the FHOG. Regardless, if this is a issue we are going to set up a loan contract and my parents will put a mortgage over the property. Is there any reason after doing all this that they can argue that I am not entitled to the grant?
From what you have indicated i cannot see any reason why your application would not be approved.
There is no stipulation on how the loan if required is funded in order to qualify.
If you paid cash for the property you are still entitled to receive the Grant.
Sounds to me like a quick call to the OSR would get to the bottom of it.
Your Broker, Banker or Solicitor should be able to sort it out but rather than rely on someone else ring them yourself.
Llet us all now how you go.
Richard Taylor | Australia's leading private lender
Even if someones parents were to have purchased them a property (which they haven't in my case) as long as the title goes in a first home owners name does it matter? The rules do not seem to indicate that it does. The lady on the phone at the SRO of was trying to tell me it does so I said where does it say that on the website and she couldnt find IT.
She was trying to say that to receive the FHOG the first home owner has to buy the property with their own money
I am getting more confused by the minute with this question.
If you win lotto on the eve of the Settlement and never have to work again as long as the Title is in your name and you comply with all of the other requirements there is no reason why you would not qualify for the FHOG.
It is not Asset related or indeed income tested so whether you are paying a loan to your parents or the local loan sharp makes no difference whatsoever.
Richard Taylor | Australia's leading private lender
The eligibility criteria says
======================================================================================
Nominee purchaser where you are a related or associated party to the named purchaser in the contract*- Evidence that the consideration has been paid by the applicant (e.g. provide certified copies of mortgage, loan agreement, bank cheques and bank statements).
* Not required if application is lodged through an approved agent.
# Application must be lodged with the SRO
======================================================================================
I did not pay the consideration my parents did at the inception of the contract, they took out the loan and I have signed a loan agreement with them to repay them fortnightly and they paid the consideration at the start. I did however transfer 25k into their account via netbank
They also signed the auction contract as I was in Sydney, I have proof of this.
Do I have to show I (the applicant) paid the consideration from my account? Or is it enough to show I am making the repayments. If I have full interest in the property and I am the only person on title, its my PPR, I live in it why does it flipping matter?
Why are they making an issue of this? After reading that eligbility requirement am I still eligible even though the initial consideration was not paid out of my account?
I could be wrong but i thought you could only receive FHOG if the property was valued under $600k or something like that.
no < 750,000,
My total property cost with stamp duty was ~800,000, purchase price on contract was 737,000
They want me to show them proof of me making payment. Yet they do not give me answers.
Is a loan agreement sufficent to show this? Should I get this certified and send to them? My parents will also be registering a mortgage on the title but they said they are indifferent on wheter or not to do this as they know I will pay them back. Do they have to register the mortgage?
From my experience with the SRO you need to make at least 3 phone calls and speak to 3 different people re your problem to get an understanding as to whether any of them have any idea re your query. If 2 give you similar answers you may be able to move forward from there, but even then it doesn't mean they understand what's correct / not correct.
Hydra
but the same lady keeps picking up
Propertyboy, sounds like a bot of a mess you have got yourself in. You were claiming in another post that your parents were wanting to claim this as an investment property. Are you sure your name is on title? and is it you only?
If they want proof of you making a payment (and I am not sure why they would want this), then you will need to show funds going from your or your lender to the person selling. The loan agreement will really only prove you borrowed the money and may not satisfy them.
I would also suggest you try to deal with the OSR in writing, that way it is harder for them to brush you off and they need to be careful how they respond.
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
yes I am the only person whos name is on the title.
plus we have a legal loan agreement setup
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