Fhog

Hi, if I buy an IP as my first property, Do I loose my FHOG or will I be able to get my FHOG when I purchase my first PPOR?
 
I thought you were eligible to. But the rules state otherwise.

From NSW Govt site.

Who is eligible for the grant?

You are eligible if:

*

you are buying or building your first home as a natural person, not as a company or trust
*

you, or a joint applicant, is an Australian citizen or a permanent resident of Australia
*

you or your spouse (including de facto spouse) have not owned a home in Australia prior to 1 July 2000 (this includes investment homes)
*

you or your spouse (including de facto spouse) have not resided in a residential property in Australia in which you acquired an interest, on or after 1 July 2000 for a continuous period of at least six months
*

you occupy the home as your principal place of residence for a continuous period of at least six months commencing within one year of the completion of the transaction to which the application relates
*

you are at least 18 years of age
*

you have not already received a grant.

I have owned an investment home previously. Can I still be eligible for the grant?

A person is not eligible if they or their spouse (including de facto spouse) has had a relevant interest in any residential property in Australia prior to 1 July 2000, whether they live in it or not.

However, a person may be eligible if they or their spouse (including de facto spouse) has only ever had a relevant interest in any residential property in Australia on or after 1 July 2000 and they have not resided in that property for a continuous period of at least six months.
 
Assuming Chara has never owned a property, if she buys an IP now (after July 2000), and does NOT claim the FHOG, she will be able to claim the FHOG for her own property later on.

Check the rules on stamp duty exemption, though, which are different.
Alex
 
Yep.

The thing that always worries me is the "may be eligible" as opposed to "is eligible".

AND like anything rules can change at anytime.

I find it very generous that they allow this so will be interested to see if it lasts.
 
Thanks a lot for the information. I just bought an IP as my first property to start. It may take sometimes for me to buy a PPOR depend on the situation. I hope by that time the law still allow me to claim my FHOG :p
I plan to buy 2 or 3 IPs before buy my own PPOR. And it may take sometimes consider we are on low salary right now (but still be able to service the current loan). Still try to find a better payment job so we can buy IP 2 sooner :p
 
Hi all,

From the QLD's OSR:
If you entered into an eligible transaction on or after 1 January 2004, you must have moved into the home as your principal place of residence within one year of the completion of the eligible transaction; and you must remain in continuous occupation in that home for a period of at least six months

So Let's say contract settled, technically you can rent out the IP for max 1 year, but have to live in it for 6 months?

http://www.osr.qld.gov.au/fhog/first-home-owner-grant/eligibility.shtml
 
Hi Perchy that's correct. NSW is the same.

You could move in for 6 months then move out or rent it for just under 12 months then move in But then you have to stay for 6 months.
After that you can do what you like.
 
Hi, if I buy an IP as my first property, Do I loose my FHOG or will I be able to get my FHOG when I purchase my first PPOR?

I am getting a loan for my first home which will be set up as IP. As soon as I move into this place as it will be my PPOR, I will ask for my FHOG which I should get within 2 weeks.
 
Hi all,
The baby (since I am new/just born in property investing :p) needs help and informations.
I bought my first house off plan, and take a loan as an IP. I just check that First Home bonus will expired on june 2009 so since it is not settle yet, I am thinking of changing it into PPOR (has to check with the bank about changing loan from investment to home owner).
My questions are: :confused:
I have to live there for 6 month then I can change it into IP. Do I need to show some prove that I live there?
Do they check whether I live there or not?
what kind of prove that I need to produce?
Or can I just let the house empty for 6 month (without prove)?
Can I change it into IP straight away after 6 month or do I need to wait for 12 month to be able to rent it out?
how do I declare it as IP after 6 month?
Is it gonna be a problem if I tell the bank that I want to change it as PPOR to get the FHOG then after 6 month I will rent it out?

Please share your experiences :)

Thanks,

Chara
 
I am getting a loan for my first home which will be set up as IP. As soon as I move into this place as it will be my PPOR, I will ask for my FHOG which I should get within 2 weeks.

Can you do that? move to your own IP then ask for FHOG? Is the IP has been tenanted for a while before you move in?
 
Yep.

The thing that always worries me is the "may be eligible" as opposed to "is eligible".

AND like anything rules can change at anytime.

I find it very generous that they allow this so will be interested to see if it lasts.

It changed in 2000 so it has lasted pretty well so far :)
 
Can you do that? move to your own IP then ask for FHOG? Is the IP has been tenanted for a while before you move in?

Off course you can. I only did it this way because i could get the bank to give me more money for the house.

I did not have any tenants living in the property when I was settling. I am not sure what happens if you have people living there, you need to stay at the PPOR for 6 months to get the FHOG.
 
I am planning to live in my IP with tennants. For Tassie it doesn't matter, I can get an IP loan, move in, claim FHOG AND have tennants in there from day one. Winner all round, as it means I can get the bank to give me more coin meaning I can get the IP I want, instead of some unit which I'll think of getting as my SECOND.
 
Hi IndexFund,
So You applied a loan for investment property then after the settlement you move in straight away so it become PPOR but your loan still under investment loan?
Did you tell your loan provider that you your house become PPOR for around 6 month?
Do you need to give some proves that you live in the property when you apply FHOG?
I am still confuse and looking for more informations. Thanks
 
I just read the sro web and found out all the proves that I need to provide.
Just want to comform, I need to lodge my application for FHOG after settlement, right?
so the documents has to be in new address, right?
now the questions:
1. do they check you at the new house? (because if I gonna claim the FHOG and bonus, I plan to let the house empty due to cheaper traveling cost and my current rent is cheap)
2. Do I need to tell my lender that I gonna make the house as PPOR for 6 months? or I just let it be as investment loan and not let them know. Do they check with my loan provider what tipe of loan that I take?

Thanks.
 
The loan manager I spoke with gave me the suggestion, so they didn't care. However, it was all "hush" in terms of policy, so I'd suggest being ninja from the bank and just saying it's investment. You just happened to "change your mind". The bank doesn't give a crap as long as you're paying them back.
 
The loan manager I spoke with gave me the suggestion, so they didn't care. However, it was all "hush" in terms of policy, so I'd suggest being ninja from the bank and just saying it's investment. You just happened to "change your mind". The bank doesn't give a crap as long as you're paying them back.

Exactly. Listen to this man.

As long as you pay the repayments every month, the bank does not give two f**ks whether the property is still IP or PPOR.
 
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