FHOG - can we do this

[Cherry Pro]

Hi - son is considering buying his first property as an IP - as his borrowings can be maximised taking the rentals returns into consideration and with him living at home. So the banks does the approx 90% lend, he has the funds to complete the purchase. The loan settles.

On settlement, can he ask for the FHOG ..he will have vacant possession of the property and live in the property for the first 6 months.

My query is will the OSR consider this as his first home despite the fact that he has bought this as an investment property. He has the funds to service the loan himself (without rental income) for the first 6 months.

Anyone done this successfully ?

Many thanks.

 

[tobe]

Yes he can. He should inform the bank of his intentions to live in the property, (this is a part of the loan agreement, to let the lender know if there is a change in circumstances) but the SRO will not ask how he got the loan approved. Its important to remember he cannot claim the FHOG through the bank, he will need to apply direct after settlement. I doubt he will be able to claim any stamp duty exemptions, that would be pushin his luck.

 

[LoanFinder]

Edited my response - didnt see that it was approved as an IP