Hi,
I am new to forum and I need some clarification
if I buy new house as a IP and 1 year later changed to as PPOR, on that time is it possible to get first home buyers grand or grand and bonus?
In any way to find rental potential place in melbourne (still I didn’t decide the pace but my budget is only 360K. on that price range I can find only Epping, Mill Park ect)
Cheers
NO you can’t- Vic FHOG has a 1 year time limit- Must move in and become PPOR within 12 month of purchase, and live there for 6 month etc…
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Yes Michael is right. The terms of the First Home Owners Grant clearly states that you must live in the property as your primary place of residence for at least 6 months during the first 12 months of owning the property.
Why would you want to do this anyway?
Ryan McLean
CashFlow Investor
Read my blog post: finding positive geared property for saleRyan McLean | On Property
http://onproperty.com.au
Email MeHi Sha
Welcome aboard.
The guys above are right.
However, if you don’t claim this time you can still claim it later on down the track when you purchase your first PPOR.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Only if he doesn't move into the IP. If you've lived in it you can't claim.
Sha .. if your budget is 360k you have options up and down the SE coastal corridor. You also have large swathes of the upper western block. Your budget should not be your limiting factor on your placement. Its possible to buy quite a nice place in pakenham for close to 300k still. The question is really what you want to derive as the end result. And how much travelling time you will need to get to work.
If you are going to try to take advantage of the FHOG to buy a PPOR .. you will need to purchase the property AS a PPOR .. not as an IP. This means you must fulfil the conditions of the FHOG. You must live within the property for at least six months .. starting from a time within the first 12 months of ownership. Thats the rules .. and thats how you get to keep your grant.
However .. once you have fulfilled the conditions of the grant .. you are allowed to rent out the property for up to six years and still have the property as your PPOR (as long as it remains your designated PPOR) and receive full benefits from this. After that the property would be treated as IP and would be subject to treatment as IP for taxable purposes on sale. If you return before the six years are up .. then you can still have the property as PPOR and have it CGT exempt. So .. if you keep this in mind .. you can have your cake and eat it too.
360k is not a limiting factor in the melbourne property market. You should still be able to find some very nice properties in melbourne well within this range. Grab a search engine and start looking.
Thanks guys for comprehensible explanation.
@ryan ; reason was I planned to rent out is current my work location is 250km away from Melbpurne and I just now started to look for to move close to melbounre. And by looking the current market trend I feel this is the time to buy.
@jamie: if I buy as IP and after 3 years I move to my IP without claiming PPOR. Later (say 2yrs) I buy the property, can I claim FOG (if FOG available on that time)?
@xdrew; your input is very valuable because I was relocated to OZ last year only. I will eye on those areas.
cheers
Hi Sha,
If you buy the property as an IP and move into it, you will no longer be eligible for the FHOG.
However, if you purchase this initial property as an IP and purchase your PPOR in 3 years time you will then be eligible to the FHOG. It is dependent of if you have lived in the purchased property at any point in time.
What some have done is to purchase a property to access the FHOG, “live in” for the minimum of 6 months, and lease the property out after converting this into your IP. Like xdrew have mentioned, you have up to 6 years with this strategy. Your budget is sufficient for Melbourne’s market and you will be able to find a property in that range.
Cheers.
sha2011 wrote:@jamie: if I buy as IP and after 3 years I move to my IP without claiming PPOR. Later (say 2yrs) I buy the property, can I claim FOG (if FOG available on that time)?
If you haven't purchased or lived in a property that was your PPOR during this time, then I can't see why not.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Sha,
You cannot claim the FHOG if you have ever lived in a property that you have owned – even if it was originally an IP.
If buying an IP, and you want to claim the FHOG on another place later, do not even think of moving into the IP at anytime in the future or you've lost the opportunity. It is all on the OSR website – osr.gov.auCheers
Thank u for all for clear explanations!!
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