FHOG - co-ownership

[salla]

Hi everyone
This is probably a well-worn subject, but can you explain the rules regarding two buyers buying a property together, and the eligibility of one applying for the First Home Owners Plus grant in NSW? I am thinking of sharing the purchase with my daughter, who meets all the eligibility requirements for the FHOG. The property would be in both our names, she would live in it for a year or so, we would both pay the mortgage, and eventually it would become an IP and we would both share the rental income.

I know there has been a lot of discussion on the forum regarding helping the kids, and I am aware of the pitfalls. However, it may be a win-win in this situation.

 

[TheCamel]

do you own any property ?

 

[salla]

Yes, I own property jointly with my husband.

 

[LynnH]

salla

Since you and your daughter are planning on purchasing the home in joint names, neither of you would be eligible for FHOG, since one of the owners (i.e. you) is not a first home owner. If your daughter purchases the home in her own name, then she is eligible for FHOG, assuming the property is going to be her PPOR.

Cheers
LynnH

 

[Peter_Tersteeg]

You can download the FHOG application forms here:
http://www.fhog.info/index_files/fhog_application_forms.htm

The front page shows the eligibility criteria (and there's a link for eligibility guidelines on this page). The advice you've received already in this thread is correct though.

There are ways for your daughter to purchase the property and for yourself to be a guarantor. This would maintain her eligibility, although you'd also be responsible for the loan without being an owner of the property.

 

[salla]

Thanks for the replies, I feared as much.
I have been researching this and have found eligibility requirements a little ambiguous - hence the question to the forum. I understood the part about both applicants for the grant needing to be first home owners but couldn't find anything about if there were two buyers and one buyer was to apply for her grant and not the other buyer (who wasn't eligibile), would the first home owner still qualify if the property was to be her PPOR. I certainly wouldn't be applying for the grant but my daughter meets all the requirements on her own.