FHOG Still Able To Be Claimed After Buying an IP

Discussion in 'Accounting & Tax' started by Chris C, 13th Jun, 2008.

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  1. Chris C

    Chris C Well-Known Member

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    I met up with a mortgage broker yesterday to discussion how much I could borrow to put towards my first property and we were discussion what intentions were for the property, and I mentioned that I was torn between taking advantage of the FHOG or just making it a straight out IP. To which he said that the FHOG is actually still claimable even if the first property you buy is an IP... this is news to me and definitely isn't how those I hang around with understand it... is he mistaken?
     
    Chris C, 13th Jun, 2008
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  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    Hmm ... it turns out he is not wrong for Qld:

    Eligibility for the Grant

    ... this is the interesting part (and specific to Qld I think):

    Very interesting - I didn't know that (but then, I don't live in Qld or own any property there)

    Edit: just checked the NSW OSR website and they have a similar rule (not as explicit as the Qld site - you may have bought an IP after 1 July 2000, and provided you have not lived in it for more than 6 months, you are still eligible for the FHOG!). Very interesting - seems it applies everywhere (checked SA too).

    I still don't qualify - bought a property in 1998 and lived in it for 9 months :(
     
    Simon Hampel, 13th Jun, 2008
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  3. Chris C

    Chris C Well-Known Member

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    I don't understand why so many people say otherwise... I must have spoken to at least 10+ fairly educated people when it comes to finance/tax/investing who informed me that you forgo your FHOG if you buy an IP.
     
    Chris C, 14th Jun, 2008
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  4. Simon Hampel

    Simon Hampel Founder Staff Member

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    I was always under that impression too - hence my original post which I subsequently deleted when I actually checked my facts!

    I think the trick is that when the scheme was first introduced, it did not apply to anyone who had already owned property - and that still applies ... if you owned property before the scheme came into effect back in 2000, you still are not eligible.

    So at the time, our understanding was correct: have IP = no FHOG ... it's just that we hadn't caught up with the details (which I suspect were added later) which allows you to own an IP since 2000 and still get the FHOG.
     
    Simon Hampel, 14th Jun, 2008
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  5. Chris C

    Chris C Well-Known Member

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    I did hear however that you may lose your transfer duty concession in the future when you buy a PPOR to claim the FHOG? I don't suppose you know anything about this?
     
    Chris C, 14th Jun, 2008
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  6. Simon Hampel

    Simon Hampel Founder Staff Member

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    transfer duty concession? Never heard of it (mostly because I haven't researched this area because none of it applies to me. But I'm not bitter. Not at all. :p )
     
    Simon Hampel, 14th Jun, 2008
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  7. samaka

    samaka Well-Known Member

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    My dad works for the NSW OSR - and he was even wrong about this! So it's not strange to me that financial planners and others don't know.

    If you go IP first then you lose the ability to claim the free stamp duty concession - however you can still get the $7000 on your first PPOR.
     
    samaka, 15th Jun, 2008
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