First Home Buyers Grant

[younginvestor]

I have bought my first property, although I do plan on renting it out, I've been told by many people I should apply for the first home buyers grant and worrying about living in it later.


What are the rules in regards to this?

 

[Rolf Latham]

Hiya

Occupy within 12 months and you are within the letter of the regulation.

ta

Rolf

 

[younginvestor]

Define occupy? and how long is the minium if any?

If the house has not tenant, does that mean I'm occupying the house?

 

[Peter_Tersteeg]

Occupy means that you have to physically live in the house for a period of time. You can use things like phone and electricity bills to prove that you lived there. If the government finds that you're getting bills at another residence, you'll probably be found not to have lived at the new residence (I don't know what the penalties are).

The conditions of the FHOG don't specify a minimum period of occupation, but most would suggest at least 6 months.

 

[XBenX]

I tihnk this topic is very much like tax

Id depends how far you like to push the boundaries

You must occupy the property as you principal place of residence within 12months for a reasonable period of time.

The problem or advantage is the defn of "reasonable"

If you are conservative then it might be 12months

If not it might be an hour, a week, a month.

What I think is important is to show you did actually occupy the residence for a reasonable period (ie be able to substantiate this)

For example what happens if I did buy a property to REALLY be my PPOR I moved in, changed all my mailing details, drivers licence, electoral role etc moved in, connected a few services (say water/gas/elec) and then after a month I found i was already behind in rent or a family member got sick and I had to move out of the PPOR and make it an IP because I couldnt afford it / had to look after the sick family member

In this case surely you'd have to define this as a reasonable period of time.

Its amazing how many ppl this has happened to


Does that make sense ?