Confusion over FHOG/PPOR status

[willy1111]

Hi All,

Not sure if this the right place to start this thread, but I just wanted some of the forums opinions on the FHOG in the following scenario.

Assume I purchase a house/townhouse with like a granny flat. The granny flat and the house are NOT separately metred for water/gas/electricity but they do have their own entrances, obviously all on one title, ie you couldn't purchase them separately.

Assuming I wanted to live in one and rent the other out, would this still be classed as my PPOR. I would be living there, and it would be my PPOR as far as I am concerned for all purposes, so as far as I am concerned I would be meeting their residency criteria of occupying the home as my PPOR for a continous period of at least 6 months (I'd just have someone else in here with me paying rent).

What do you think the SRO would be likely to do, if anything, if they discovered this? should I wait 6 mths before getting someone in to pay rent (just to be sure to be sure?

Just looking for people's opinions.

Thanks

Willy

 

[vbplease]

Willy,
I had a look at the Vic webpage http://www.sro.vic.gov.au/SRO/srona...04420DC-33DE6510FE93318ECA2575CB0000E789?open
and it doesn't say you can't, although it may in the terms and conditions on the application form.. best confirming with a phone call.

If it turns out you can't, I'm sure they will be checking your tax return, i.e. if you're claiming deductions from your granny flat.

 

[Peter_Tersteeg]

As far as I'm aware, there's no restriction on you getting a boarder into a spare room so it follows that putting someone into a granny flat as you describe would work the same way.

I'd avoid claiming interest and other deductions for several reasons; you avoid capital gains tax issues when you sell, and it could also put you into a grey area on the purpose of the property, which might lead to the issues you're concerned about.

Of course you should declare the income you earn for tax purposes, but I have heard that a lot of people just do this on a cash basis. In this situation there probably wouldn't be a lease in place either, which can be risky if you're in dispute with the tenant.

 

[graisme]

to take this thread a step further;
if my son buys a house which is currently divided into 3 separate units that are still on the same title, is he still eligible for the fhog?

ie; he is looking at a large victorian house which was altered to become 3 separate units in the 30's. he intends to move into one of the units 6 months after settlement so it will be his principle place of residence.

the units are all on leases and separate utilities etc.

 

[willy1111]

I just spoke to the SRO in Vic, they advised that as long as you are in the property for 6 months they don't care who you got living with you or if they are paying rent - as long as you are living there they don't care about anything else.