First Home Owners Grant Questions

Hi All,

Stumbled across this forum a few days ago and am quite confident that it is going to be an endless source of knowledge and experience. So I'm look forward to discussing numerous issues with you and giving my 2 cents worth as well...

I have a few Questions relating to the first home owners grant as it stands at the moment in NSW:

1. I read somewhere in these forums where it alluded to the fact that you can purchase an IP and not void your ability to use the FHOG at a later date? is this true and are there any special clauses or restrictions?

2. Can the FHOG be used to purchase say a 4unit complex? where 3 are rented out and 1 is listed as my PPOR? does that work or is there rules against such a property being used for that?

3. Am i right in thinking that there is little to nil benefit in having two first home buyers purchase a house and affectively only getting the one grant between two as opposed to two different properties where the grant would be two fold?

Thanks in advance for the answers and for any advice you have for the First home buyer who is looking to start down the track of an IP portfolio...

Regards,
Tim

 

My understanding (at least up here in QLD) is that if you do opt to buy an IP as your first property, you aren't forgoing your FHOG but you are giving up your right to claim the stamp duty exmeption, which in many cases can be signifincantly higher than the FHOG.

 

What a great forum, really glad I discovered it. I too have questions re FHOG. I travel extensively for work (few weeks a month) and am wondering:

- how that impacts the principle place of residence requirement
- and if I rent/share the home whether that has an impact on the principle place of resident requirement

Thanks!

 

Hi Babi

Working and travelling won't affect your residency status- as long as you reside in the place for at least 6mths within 12mths of purchasing it. However, if, during this 6 mths, you need to go away for work for days/weeks, it won't affect anything. Just keep paying your bills (electricity, phone, gas, rates etc) to demonstrate that it is indeed your PPOR for the required period.

Renting the place out, however, during the 6mth requirement period is a no-no and any rent will be classified as income, thus nullifying your FHOG eligibility. Please note that if you declare rental income the OSR will ask for your FHOG (and any benefits) back, so be careful
Best to speak to your accountant and read the requirements for the FHOG over with your lender to ensure you know exactly where you stand.

Eligibility - NSW Office of State Revenue

 

Thanks!

Thanks for the really clear answer Jacque.

The expected rental income isn't worth forgoing the FHOG, so I'll scratch that from the plan. Now, to get things in order before the FHOG Boost expires on 30/6/09.

 

Be careful not to be caught in a 'rush' to get in before the FHOG doubling expires, as spending $10k more for a $7000 bonus doesn't make sense!

Cheers,
David

 

FHOG with spouse

Hi there. Thought I would continue with this thread, tho with a slightly different set of questions.

In 2003 I bought a property with my then wife. We received the grant. Lived in the property for 11 months, then we went out separate ways, selling the house at basically the purchase price.

Anyways, I am wondering about what this means if I wish to help someone else purchase a property when they are eligible for the grant and I am not.

Does anyone know the specifics around things such as:
The house is in their name only but I am on the mortgage to help the loan service?
If i was helping with the mortgage payments, but not on the title, does that automatically mean i have an interest in the property and that person is no longer eligible for the grant?
If my name was on the title with say 2% interest, does this have an impact?

if i was paying this person rent, rather than straight out paying part of the mortgage, is this treated differently?

Basically, I am trying to work out how i can get a friend into their first home by using my income to help service.

Any suggestions?

 

Question about first home buyers grant

I bought a house in 2001 and received the $7000 first home buyers grant having full intention of moving into the house. But my circumstances changed and I was offered a job overseas to work. Therefore I never moved into the house. A few years later I had to pay back the first home buyers grants as I never had moved into the house. Now I would like to buy a house again so I want to know if I'm eligible to receive the First home buyers grant even though I’ve paid back the original grant plus interest?

Thanks

 

Hi Guys,

This is a great thread, it's so refreshing to read concise and easy-to-understand financial information!

I have another question:

My partner and I have never purchased property, but he inherited a home overseas (in New Zealand) that he now rents out (he inherited the property about 5 years ago, and lived in it for over six months at this time).

We are looking towards buying our first home together later this year (unfortunately probably after the FHOG boost deadline in June). Are we still entitled to receive the grant considering the fact that he already owns a home?

Thanks in advance for your help!

 

Have you considered lending your friend the money instead? May be a much simpler solution if you don't want anything to do with the actual property transaction.

 

Glad it's been of help

Yes you are both entitled as the FHOG only applies to property purchased here in Australia. For established property it's $14K until June 30. Happy buying!

Check out the FAQ section of the OSR site here Eligibility - NSW Office of State Revenue

 

Yes i have considered that, however she would not be able to service the debt on her own income alone.....

 

Well, don't take this the wrong way, but perhaps it's better that she waits or adjusts her price to a point where she can afford to service the loan by her own income. You sound like a good friend but borrowing with and/or lending to family and friends can often end badly- you want to make sure it's a watertight relationship.

 

Car Rego

Great thread! I too have a question regarding the FFOG. I purchased a property and have rented it out for the first 6 months as is allowed and now have the house empty whilst I work away. All utility bills are sent to the property/PO Box linked to the property.
I was working interstate during the time when the property was rented out and thus my car still retains the interstate license plates. My father has insisted continuously that I need to change the plates over to the state that the property resides in, however as I'm not recieving any rental income at the moment and all utilities are in my name I can't see why the state of registration has anything to do with my eligibility for the FFOG.

Can I be deemed ineligible for the FFOG based soley on an interstate registration of my car?

Cheers, Roger.

 

Car Rego

By FFOG I mean FHOG! It's been a long day....

 

FHOG GFC Stress

Hi,

Hopefully someone may be able to help me with these questions.

I bought a unit in South Australia and received the FHOG and the boost in June 2008. I haven't lived in the place yet and am currently living in NSW. The place in South Australia has been rented out since I purchased it.

When I purchased the property i intended to move back to SA and move in to the property but now with the Global Financial Crisis I have been unable to obtain a job there, and my partner also lost her job before Cristmas meaning our funds are almost depleted and meaning I can't afford to move back there.

My question is can it be my Principal Place of Residence even if i don't live there and rent a place, live, and work interstate?

Otherwise given I can't afford to pay the grant back are you allowed to pay it back in intallments?

Could I get an extension to the 12 months required to move in to the property?

Given I fully intended to make this my principal place of residence and circumstances have prevented me from moving in, is there any possibility I could retain the grant?

Thanks to anyone who can help.

 

FHOG GFC Stress

Hi..

One last question...

If I do pay back the FHOG can i get it again?

Thanks