FHBG- Renting a room out

[Bayside]

Just wondering if your allowed to rent a room out in you P.P.O.R if you recieved the FHBG. I have a mate who is keen to stay with me at my place for 6 months and pay some rent. Not sure if I should take him up......

 

[vbplease]

Your question is one of the FAQ's on the FHOG webpage.. have you seen the webpage?

All applicants are required to occupy the home as their principal place of residence within 12 months of completion of the eligible transaction.

If having a boarder/s does not impinge on your ability to make the home your principal place of residence, the Commissioner may be satisfied that the residence requirement has been complied with.

However, if you received the transfer concession, you can't rent out a room for the first year. In the declaration it says...

I will not dispose/I have not disposed of all or part of the residential land by the way of transfer, leasing or otherwise granting exclusive possession, within one year after the date of occupying it as a home.

 

[wizzy]

Im not sure of the legalities but i believe this would be in line with the spirit of the FHOG. You are living there as your PPOR and you are taking a small amount of money off a mate to live with you. It is still your ppor and you bought it for that not for an investment.

I plan to do the same aswell and think it should be encouraged.

 

[Witzl]

im thinking about ways to buy a PPOR-slash-IP with the new FHOG and NSW stamp duty exemptions.... and "live there" for 6 months whilst having one or two other people privately boarding the spare rooms....
... then after the 6 months necessary, it becomes an IP and i go back to my current arrangements.

Its definitely some food for thought, as the FHOG + stamp duty exemptions are worth about $21,000 for the properties im looking at.

 

[Bayside]

ok great, thanks for that information! I'll be going back to current arrangements after 6-12 months too

 

[SupaRex]

If its a mate you trust, I'd be doing it for cash and just keeping quiet.

 

[battery]

from what i gather you can still be eligible for the FHBG if you own an investment property, so you could buy an investment property and when your ready buy a property that you plan on living in and use the FHBG for that property.