First Home Owners Grant

[WebBoard]

From: Mike .


$7000 Grant
From: steverm
Date: 7/13/00
Time: 12:19:52 AM

Do you qualify for the grant? This is an extract from the application form. "A new or established dwelling including a house, flat, unit, townhouse or apartment anywhere in South Australia (other states should be the same) that meets local planning standards. The dwelling must be used as your principal place of residence within 12 months of the date of settlement in the case of an established home, or for a new home, 12 months from the date construction is completed. The contract to purchase an established home or to build a new home must be signed no earlier than 1 July 2000."

For more info:

ACT revenue office - http://www.act.gov.au/government/taxation
NSW treasury office of state revenue - http://www.osr.nsw.gov.au
NT treasury - http://www.nt.gov.au/ntt/revenue
Office of state revenue Qld - http://www.osr.qld.gov.au
Revenue SA - http://www.treasury.sa.gov.au/revenuesa
Department of treasury and finance (TAS) - http://www.tres.tas.gov.au
State revenue office(VIC) - http://www.sro.vic.gov.au
State revenue department (WA) - http://www.wa.gov.au/srd

I have only 1 question:

It does not say anywhere that I can see how long you have to actually live in the house. Can anyone help?

 

[WebBoard]

Owen

Reply: 1
From: Mike .


Re: $7000 Grant
From: Owen
Date: 7/13/00
Time: 9:31:02 AM

I read the same thing a while ago and wondered about the wording a bit. The document specifies that it has to be your principal residence but that you have 12 months to move into it. I wonder if that allows you to rent it for 11 months first? You're right, it doesn't say how long you have to live in it afterwards for either.

The $7K option doesn't apply to me (unfortunately) but could be a huge opportunity for someone else.

Owen

 

[WebBoard]

Crystal

Reply: 1.1
From: Mike .


Re: $7000 Grant
From: Crystal
Date: 7/13/00
Time: 8:57:52 PM

I spoke to the Office of State Revenue a few months ago and asked the question.......If I live in the property for a few months and then decide that I cannot "afford" the repayments, can I move out and rent it? The answer was yes that would be OK!!! Please note that this was a few months ago and I was told that the rules were not finalised yet.

Hope this helps, Crystal

 

[WebBoard]

Justin

Reply: 1.1.1
From: Mike .


Re: $7000 Grant
From: Justin
Date: 7/15/00
Time: 1:49:09 PM

I currently have an investment property, but still pay rent for the property I live in, as I am finacially better off not to move into the investment property. I have never lived in my investment property. I doubt it but, If I wished to buy another property to live in, would I qualify for the $7000 grant? If not than this would also appear to discriminate against property investors who chose this as their investment vehicle, as opposed to investing in the sharemarket etc. Any thoughts?

 

[WebBoard]

Adam

Reply: 1.1.1.1
From: Mike .


Re: $7000 Grant
From: Adam
Date: 7/17/00
Time: 12:53:45 PM

Hello I have thoughts on exactly the same thing, as I live with my parents and have never lived in my own home, would I be eligible for the 7 thousand given that I have 3 ip's?

Another strange rule (an advantage) is my total income is over 100,000 dollars a year, however because my taxable income (after interest payments depreciation etc) is around 15000 a year I get a 150 dollar low income rebate. Try telling your mates (the ones who really do struggle) that story, and the chances of coming out in one piece are low.

Regards Adam

 

[WebBoard]

Andrew G

Reply: 1.1.1.1.1
From: Mike .


Re: $7000 Grant
From: Andrew G
Date: 7/20/00
Time: 1:09:27 PM

The aim of the first home owners grant was “positive discrimination”. It was suspected that due to the GST housing prices would rise. The effect being that if you did not hold any property it would become more difficult to get into the game. Thus widening the gap between rich & poor. The grant is an attempt to stop first home owners being disadvantaged by any GST related inflation. As you guys (Adam & Justin) already have property then you have enjoyed any increases in housing prices and so have not been discriminated against, in fact they would argue you have benefited from the whole deal.

I am not here to argue as to how effective the scheme has been nor defend the logic behind it, I’m just attempting to explain it. It has nothing to do with home ownership and everything to do with financial equality.

Andrew G

 

[WebBoard]

Adam

Reply: 1.1.1.1.1.1
From: Mike .


Re: $7000 Grant
From: Adam
Date: 7/24/00
Time: 10:41:39 AM

When you put it like that, it sounds fair...(almost).