Hi everyone!
I am 22 and looking at getting into the property market.
Just a quick question can i purchase a property as an investment and not claim on the FHOG? I would like to buy a cheap property and rent it out, never occupy it myself as my current rental situation is quite good. I would like to use the Grant later, not sure if this is possible.Thankyou for any advice you could give me.
There was a 'loop hole' which allowed individuals to purchase an investment property, not live in it and at some stage in the future buy their own home and still be eligible for the FHOG.
Best to check with the relevant websites – FHOG & OSR (or similar) in your own state.
Matters like these should always be checked against the relevant supervising authority.
There used to be a loophole that allowed you to buy an investment property and still claim the FHOG. This was because the FHOG used to state that you have not owned a PPOR before, rather than any property. This was changed a couple of years ago – I’ve included the major criteria below for your reference.
FHOGS is available to people buying or building their first home and who meet the following eligibility criteria:
Each applicant is a natural person and not a company or trust.
At least one applicant is a permanent resident or Australian citizen.
Each applicant must be at least 18 years of age.
All applicants and/or their spouse/de facto have not owned a residential property, jointly, separately or with some other person, in any State or Territory of Australia before 1 July 2000.
All applicants and/or their spouse/de facto have not owned on or after 1 July 2000 a residential property and occupied that property jointly, separately or with some other person in any State or Territory of Australia for a continuous period of at least six months.
Each applicant has entered into a contract for the purchase of a home or signed a contract to build a home on or after 1 July 2000. In the case of an owner-builder, laying of the foundations commenced on or after 1 July 2000.
The total value of the property does not exceed the cap amount.
This is the first time an applicant and/or their spouse/de facto will receive a grant under the First Home Owner Grant Act 2000 in any State or Territory (unless subsequently repaid).
At least one applicant will occupy the home as their principal place of residence for a continuous period of at least six months, commencing within 12 months of settlement or construction of the home.
As always, seek independent and specialist advice before committing to something if you’re not 100% certain.
FinSpec wrote:All applicants and/or their spouse/de facto have not owned a residential property, jointly, separately or with some other person, in any State or Territory of Australia before 1 July 2000.All applicants and/or their spouse/de facto have not owned on or after 1 July 2000 a residential property and occupied that property jointly, separately or with some other person in any State or Territory of Australia for a continuous period of at least six months.
Tis a veritable minefield out there isn't it.
Maybe my reading comprehension is up the creek on a Saturday afternoon (help me please if it is) but the way I read these two points and based on the information provided in the first post it would APPEAR as if this person is eligible for FHOG as follows:
1. No this person hasn't previously owned a property.
2. They still haven't owned and lived in the property for 6 months or more. Yes they own a property but haven't addressed the residency criteria.
As I said earlier check with the supervising body but maybe my Saturday afternoon brain is all frazzled after painting a driveway with acyrlic sealer.
I think Derek is on the money. You can still claim the FHOG if you have owned reisdential property, but if you have owned a PPOR in the past you can not. This is because property is just another asset class- the same as shares and bonds etc so it is just designed so someone who has invested in property in the past is not at a disadvantage compared to someone who has invested n shares.
Luke.
Finspec wrote
At least one applicant will occupy the home as their principal place of residence for a continuous period of at least six months, commencing within 12 months of settlement or construction of the home.
So does that mean if you fit the criteria You can purchase property, claim the FHOG. Rent it out for the first 11 months then move in and live in it for a minimum of 6 months and keep the grant. Or does the 6 months have to be within the first 12 months?
Jake H wrote:You can purchase property, claim the FHOG. Rent it out for the first 11 months then move in and live in it for a minimum of 6 months and keep the grant.Yes. As long as you move in "within" the 12 months THEN stay for 6 months.
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