FHOG Doubled and Tripled

[Bayside]

I am amazed at the emotion of individuals here (and two other acquaintenaces that also had the same reaction) to the news about the rules on the FHOG and how they just missed out based on the eligibility rules, having just recebtly purchased. It comes across as if you were owed something, and then the government took it away from you.

My question is to those who are feeling aggrieved, if you committed to the purchase, I am assuming you believe it was in your best financial interests to do so. Then what has changed after this policy announcement?

haha, I don't feel like i'm owed anything. I'm just greedy.... been saving for 3 1/2yrs for my deposit and now finally having signed a contract I missed out on an extra $7k
That would have put me 6 months ahead. I could have purchased a reliable car to get me to work from my new home in Bum Fu*k nowhere. Now i'll need to keep saving for it!!! Anyhoo, life goes on....

 

[tcocaro]

FYI - "newly constructed" definition

For all those builders, developers and investors out there I have just spoken to OSR of QLD who advised the 21k for "newly constructed home" includes units/townhouses purchased off-the-plan.

 

[stumunro]

For all those builders, developers and investors out there I have just spoken to OSR of QLD who advised the 21k for "newly constructed home" includes units/townhouses purchased off-the-plan.

Does it include already built, new houses

 

[tcocaro]

Does it include already built, new houses

good question you will need to call BUT i would assume yes. newly-constructed in its literal sense means past tense..

My assumption is that anything that will be built, just built and is new will be 21k but to be sure call....

Also interesting would be where does heavily renovated properties fall? established? what happens if I, restump, relocate a property and renovate it from top to bottom.. whats that considered? - I would assume "established".

If you do call, they are getting swamped though so you will have to wait a while.

 

[Max Carnage]

good question you will need to call BUT i would assume yes. newly-constructed in its literal sense means past tense..

My assumption is that anything that will be built, just built and is new will be 21k but to be sure call....

Pretty sure the original FHOG 'bonus' required specific documentation if you wanted the extra $ for financing construction. Specifically, a building contract, signed by the person claiming the grant.

 

[lizzie]

A newly built home for 200k? Maybe if it's a 2 bedder and one bath in the country. A 200k home means the builder makes 40k.

well - that would build for me a 2bed/2bath/single gge/rental quality townhouse, and only just cover the cost of the land underneath ... but there would be absolutely no profit margin.

don't think i'll bother rushing out - still got 4 years before my da expires.

 

[stumunro]

I just rang NSW OSR, and they told me they haven't received or updated the official documents to the definitions and application of "newly built".

She said that unofficially, it means anything that you WILL construct, or that has BEEN constructed will be covered, as long as you are the first person to habit the property.

She said she doesn't think refurbished developments will count, onyl newly constructed housing.

But alas we will wait and see what 'official' documents will say, we both agreed that the government should have made the rules & documentation before telling everyone

 

[MichaelW]

still got 4 years before my da expires.

Really?

My DA is only good for 24months. How did you manage 4 years?

I'm counting down to January 2010 when mine expires, and thinking I might have to lodge for a 12 month extension. Even if I have to resurrect it, I won't commence until I know the outcome will be positive.

Cheers,
Michael

 

[Spectre]

FYI

http://au.news.yahoo.com/a/-/latest/5079897/rocky-road-ahead-despite-104b-pump/

 

[lizzie]

Really?

My DA is only good for 24months. How did you manage 4 years?

I'm counting down to January 2010 when mine expires, and thinking I might have to lodge for a 12 month extension. Even if I have to resurrect it, I won't commence until I know the outcome will be positive.

Cheers,
Michael

i also thought my was only 2 years so emailed council and asked if i could extend it to 5 years as i knew that this was available under application ... only to be told "in writing" by the planning officer that da's are valid now for 5 years but i will need to get my construction certificate before building.

needless to say i kept a copy of the email.

 

[Alex P Keaton]

I am amazed at the emotion of individuals here (and two other acquaintenaces that also had the same reaction) to the news about the rules on the FHOG and how they just missed out based on the eligibility rules, having just recebtly purchased. It comes across as if you were owed something, and then the government took it away from you.

My question is to those who are feeling aggrieved, if you committed to the purchase, I am assuming you believe it was in your best financial interests to do so. Then what has changed after this policy announcement?

Well mate how would you feel if you had just missed out!!
I dont know why you are amazed.



How can you understand when you are not in the same boat. You cant!! And no, I dont feel I was owed something. Just was bad timing.


Anyway I'm just trying to see the positives now. I am still happy i got in when I did because now that the increase has come in there will be more competition in the lower end of the market which will push prices up. Lots have been waiting on the sidelines unsure about the economy. The market will really get moving now. I did well with the free $9000 and stamp duty exemption and I got a good price for the unit I bought so I am still happy. My property should go up in value now sooner rather than later I think.

 

[buzzlightyear]

Well mate how would you feel if you had just missed out!!
I dont know why you are amazed.



How can you understand when you are not in the same boat. You cant!! And no, I dont feel I was owed something. Just was bad timing.

Kim, I bought my first property (contract signed in early 2001) just before the original FHOG came into place in July 2001. I tried to have the contract cancelled and re-signed again for post July 1. It didn't work. My reaction was pretty muted, I guess I was still happy with my first purchase. If I was on this forum at the time, maybe I would have vented. Although probably not. But that is maybe a personal trait of mine.

Anyway I'm just trying to see the positives now. I am still happy i got in when I did because now that the increase has come in there will be more competition in the lower end of the market which will push prices up. Lots have been waiting on the sidelines unsure about the economy. The market will really get moving now. I did well with the free $9000 and stamp duty exemption and I got a good price for the unit I bought so I am still happy. My property should go up in value now sooner rather than later I think.

I agree. Any policy that provides more money to spend on property will eventually wash through into prices and then at least the opportunity to get into your next one sooner than you may expected.

 

[Alex P Keaton]

I wrote to the Federal Housing Minister TanyaPlibersek, to find out what the rules are.

Here is the reply from her office.


Dear Kim

Thanks for your email about the First Home Owners Boost announced by the Prime Minister and Treasurer.

To be eligible for the First Home Owners Boost, you must enter into a contract to purchase a house between 14 October 2008 and 30 June 2009. Unfortunately, as you have signed your contract before this time, then you will not be eligible, even if you have not settled or lodged your grant application form.

I understand this must be frustrating, but unfortunately all measures need a start date and a finish date. I have attached a fact sheet which provides some more information about the eligibility criteria.

Best wishes
Tanya


Yey at least now I have concrete info.


Here is the fact sheet


DETAILS OF FIRST HOME OWNERS SCHEME (FHOS) /FIRST HOME OWNERS BOOST (FHOB) ADMINISTRATION

• The current $7,000 FHOS is administered and funded by the States and Territories.

• The Commonwealth will provide funds to the States and Territories for the First Home Owners Boost, which is the additional $7,000 for established homes and $14,000 for newly-constructed homes .

• The Treasurer is writing to the State and Territory Treasurers seeking their assistance to administer the FHOB.

• The Commonwealth Government will set up appropriations to provide funds to the States to cover the expenditure associated with the additional grants (that is, the additional $7,000 for established homes and $14,000 for newly-constructed homes).
Eligibility

• The eligibility criteria for the FHOB is the same as for the FHOS. That is, in general, the following must be met:

– Applicants must be 18 years of age or over;

– Both the owner and their spouse/partner must not have owned a home previously (this means that if either one of the applicants have previously owned a home, then they will both be ineligible);

– The home must be the principal place of residence for at least one applicant for a period of 6 months within 12 months of completion or settlement.

– Eligible first home owners have 12 months from either the date of settlement or date of completion to apply for the FHOS.
Eligibility for FHOB:

• Eligible applicants must purchase a home between 14 October 2008 and 30 June 2009.

– For established homes, this means entering into a contract to buy (referred to as exchange);

– For newly-constructed homes, this means entering into a contract to build a house. The contract must be for building to commence within 6 months and must be completed within 18 months of commencement.
Payment

• For a newly established house, the FHOS (and FHOB) is paid (in a lump sum) to the first home buyer upon completion, that is, when a certificate of occupancy is provided.

• For an established house, the FHOS (and FHOB) is paid (in a lump sum) upon settlement (ie when the conveyance is completed).

• The grant can be paid directly into the first home buyers account.

 

[Alex P Keaton]

Kim, I bought my first property (contract signed in early 2001) just before the original FHOG came into place in July 2001. I tried to have the contract cancelled and re-signed again for post July 1. It didn't work. My reaction was pretty muted, I guess I was still happy with my first purchase. If I was on this forum at the time, maybe I would have vented. Although probably not. But that is maybe a personal trait of mine.


I agree. Any policy that provides more money to spend on property will eventually wash through into prices and then at least the opportunity to get into your next one sooner than you may expected.

so you understand what its like. I guess people react in different ways... Yeah I have read that the extra $7,000 will just increase the prices the real estate agents will be asking for anyhow. It would have been handy to have cos I just realised I have to fork out another $5,500 that I didnt know I had to pay. It would have come in handy, I'll get the increase though, an increase in value (equity) soon though which will be good, just wont be cash in hand.




Well i better get back to work, lunch is over

 

[tcocaro]

This contradicts the advice being issued by OSR. This sounds like units/townhouses wouldnt be included given a buyer wouldnt in effect be entering into a building contract but rather a contract to purchase.

On this premise it would also exclude (house & land) packages, which i wouldn't think is the intent of the FHOG.

Is this the same understanding you have?

PS - Amazed that Tanya replies to her email and so prompty...

– For newly-constructed homes, this means entering into a contract to build a house. The contract must be for building to commence within 6 months and must be completed within 18 months of commencement.
Payment

 

[Gee Cee]

Lizzie Build it for your countries people

Hey Lizzie just get out and build. Don't worry about paying all theinterest and other things. You don't need to make a profit.

Sell it to someone and allow them to get a start
You can always claim the Loss somewhere in the future.

Go On. just do it

Gee Cee

 

[steveadl]

Also .... Heard earlier on the radio
Taxpayers fund the banks who charge higher rates back to them and now the banks are all govt rated - should more rate reductions be passed without since funding is now guaranteed.

Not really. The govt. guarantee will just mean that the banks access to funds/markets won't dry up (because it's now secure with govt. backing) and whilst it may decrease the funding cost somewhat, the cost of debt has still increased compared to the recent past. If the funding costs come down and the banks can get some of their margin back, then they would likely pass on the decreased cost.

i remember talk about boosting the FHOG to 14k last year. My opinion on this is that rather than boost the FHOG by 7k, which i feel will just inflate prices by 7k, why not reduce the stamp duty payable, especially for FHO?

It has pretty much the same effect, an extra $7k in the hands of FHB's for them to bid up the house they want to buy. Whether it's through a stamp duty cut or a cash bonus doesn't make too much difference to the extra demand and price pressure it places on the market.

 

[Alex P Keaton]

PS - Amazed that Tanya replies to her email and so prompty...

Was probably just a standard statement that they had prepared for everyone, and then the girl there prob just typed in the persons name.

 

[Ausprop]

This contradicts the advice being issued by OSR. This sounds like units/townhouses wouldnt be included given a buyer wouldnt in effect be entering into a building contract but rather a contract to purchase.

On this premise it would also exclude (house & land) packages, which i wouldn't think is the intent of the FHOG.

Is this the same understanding you have?

PS - Amazed that Tanya replies to her email and so prompty...

house and land shoud be right - how can you distinguish between h&l and house.... and land.

 

[RumpledElf]

I reckon they should give the bonus'es as food and utilities vouchers.

See, now that would suck bigtime. Like the baby bonus - I kit the baby out for $500. They gave us $4000, and I spent most of it on rainwater tanks and gravel. If it came in vouchers for baby stuff I would have bought exactly the same things I got secondhand for $500 and spent $4000 new instead, and I would have had no water to wash the baby with - the government doesn't give people money to supply clean drinking water.

Ditto the pensioner/carer bonuses. What if you need tyres for the car, or your hot water service needs replacing but you've been given a supermarket voucher instead? You'd be annoyed, but the person who likes to eat lots of junk food would be happy.

Plain ol money is better.