FHOG and Transfer Duty - Overseas for Work

[DanMunchie]

Hi all,
On Feb 1st 2011, I bought a unit. I got the FHOG and Transfer Duty Concession.
There is a pre-existing tenant in the property until March 20th 2011. And I intended to move in (and make the property my PPR) as soon as the tenant leaves.
However, I have been told that in the near future I may be transferred overseas for work (secondment for ~3 years).
If I am able to move in and set up my PPR before I leave, can I have tenants while I am gone and still keep the FHOG and TDC?
Basically the question is - what exceptions are in the law for people transferred for work?
Thanks,
--Dan

 

[Wunderbar]

Well....simple answer is simply tell the government that you're still staying there, let your mail direct there until the 6 month period. Just tell them you've gone on a long-holiday. After 6 months just lease it out to someone else.

 

[DanMunchie]

True for the FHOG.
For the TDC it is 12 months as PPR with no tenants.
I would very much like to not wait 12 months before renting the place out... but if it is the only legal avenue, then it is what I will do (and was planning to do).

 

[alexlee]

True for the FHOG.
For the TDC it is 12 months as PPR with no tenants.
I would very much like to not wait 12 months before renting the place out... but if it is the only legal avenue, then it is what I will do (and was planning to do).

Is it really worth it to keep it empty for 12 months, given that you won't get rent and can't deduct expenses?

 

[Wunderbar]

Answer: Do the 6 months to get the FHOG, then rent it out after that and forfeit the TDC. Otherwise you're missing out on 10k in rent....that's a big hit for a small little gain

 

[DanMunchie]

Hmm, that might work out best. That is, if I can keep 6 months worth (1/2) of the TDC and not have to pay penalty tax. By doing the 6 months I can also use the 6 year rule with CGT if/when I sell.

 

[DanMunchie]

Next question is... how would I go about getting only 6 months worth of the TDC, if my situation technically changed well beforehand. Wouldn't simply starting having renters cause me to have to pay back the whole amount... whereas if my situation changes they allow partial repayment (I think).

 

[Peter_Tersteeg]

A radical idea that bears further investigation! Tell them the truth and be upfront about it. You'd have to refund some money, but I know of people who have done this and then received the benefit with the next property they bought.

This may not be the best way forward for your circumstances, but you should consider it.

 

[DanMunchie]

How did that work given it wasn't their first property?

Also, I have called the OSR, but at the time I was just wondering if leaving it empty would allow me to keep the FHOG and TDC. Essentially, the answer I got was "if it's your PPR, then yes".

I guess I need to call again and ask about renters. I'll report back after I do.

Why the government is, via the TDC, essentially punishing first home buyers for renting out rooms is beyond me.