$7000 first home owners

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From: Bill Churchwell


I'm new to the game and have been working through all the questions I have for myself in getting started. Any help is appreciated.
Q1. If someone is on a L/O do they still qualify for the grant at the end of the Option term? Thank you to all who reply. I'm sure that this is the beginning of many questions. thanks again.

Bill C.

 

[WebBoard]

Reply: 1
From: Simon St John


So long as it is their first purchase and the other qualifications are met they would be eligible.

As I understand it the option is just that - an option to buy, not a purchase.

When the time comes to exercise the option, that triggers the sale transaction.

So long as the person has not owned a property in the past then the option exercise is their first home....bingo.

That's how this novice understands it but the experts will correct me if wrong (please).

Simon

 

[michaelg]

Reply: 2
From: Michael G


Bill,

Should do (in my opinion) since if they exercise the option its a straight sale. But if they say, take a 12mth option and the FHOG fins in July. Then they decide to take the option, I dont think they qualify since they never entered into a contract to buy during the FHOG period.

Of course, speak to a solicitor who is familiar with section 13 of the FHOG act, thats the bit that defines possession.

Other's here may be able to point you to other references.

Michael G

 

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Reply: 2.1
From: Sergey Golovin


Probably the actual fact that you have signed the papers, moved in and paying the rent + extra (deposit) towards your future property class you as part owner of the property, even if you only paid $10 towards it and have 5 more years to go.

Andrew Gray has written an excellent book about lease options. Maybe you can find some answers there.

Serge.

http://www.osr.nsw.gov.au/firsthome/top20_2.pdf

 

[Sim]

Reply: 2.1.1
From: Sim' Hampel


Strictly speaking, with most L/Os, title has not passed to you when you first start paying rent. It is not an installment contract like a wrap is, so FHOG would not come into effect.

Of course, there are many ways to structure a lease/option, so it would require careful consideration of the rules for the FHOG to see if the structure could allow the FHOG.