"$7,000 Home owner's Grant"

[WebBoard]

From: Glenn M


Does anybody know how long you have to live in the first property you buy (using the $7,000 grant) before you can move out and convert it into an investment property?

I have heard that some people have moved in for a week and have then moved out and rented the premises.

Thanks,

Glenn.

 

[Crystal]

Reply: 1
From: Crystal .


Hi Glenn,
Please read the thread titled ...
Decisions for a Newbie??? posted by Shane on Sunday March 11th 2001. I think you'll find this discussion covers the very grey area of the FHOG.

I hope this helps,
Regards,
Crystal
PS I've attached a link to the discussion
http://bne003w.server-web.com/read?609,30e#609

 

[WebBoard]

Reply: 1.1
From: Glenn M


Thanks Crystal.....after reading the various replies, it still looks like it is very much still a grey area.....Much room for interpretation and manipulation!!!!



Glenn.

 

[WebBoard]

Reply: 2
From: Mel W


Hi, some friends of mine bought their house using the grant, lived in it for a week and then it became an IP.
I've looked into it quite a bit and no where does it seem to say how long you have to live there, just that you have to at some stage during the first year. (I guess that was a pretty big mistake the rule makers made, you really would have expected them to have set a time you have to live there).
I've also seen this question lots of times (not just in this forum), but as yet I haven't seen anyone come up with a time limit.
Hope this is helpful,
Mel

 

[WebBoard]

Reply: 2.1
From: Sergey Golovin


I think you right there guys.
It is no time limit or time frame.

http://www.osr.nsw.gov.au

Only - move in within 12 month.

Regards
Serge G.

 

[lupus]

Reply: 2.1.1
From: Sam W


Was looking into this facet of the grant myself. One thing that comes to mind is not so much the grant, but the problem of stamp duty.

As you will be purchasing a "home" rather than just a property, I assume the stamp duty paid will be that of a home, rather than an investment property, which is higher. So, perhaps the question isn't one of how long does one need to live in a property purchased under the FHOG, but a question of how long does one have to live in a property to qualify for the lower stamp duty? Otherwise, why pay the higher investment property stamp duty?

Just my "newbie" opinion of course

Sam

 

[WebBoard]

Reply: 2.1.1.1
From: Kylie S


Sam,

I could be wrong - but as far as I am aware, stamp duty is not different for IPs and a home - however it is different if you build instead of purchasing an established home... If unbuilt - you only pay stamp duty on the land.

Kylie

 

[Les]

Reply: 2.1.1.1.1
From: Les .



G'day Kylie,

I think it varies state-to-state - in Qld it IS cheaper for a Home Buyer than an Investor - approx. HALF !!!

Regards,


Les

 

[lupus]

Reply: 2.1.1.1.1.1
From: Sam W


Les,
Thanks, guess I didn't know the situation from state to state. But there is definitely a difference in Qld, as having just purchased a property here, I found out the fairly substantial difference required for stamp duty between a home owner and an investor.

Thanks

Sam