First Home Owners Grant

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From: Mike .


First Home Buyers $7000 Grant
From: Benjamin
Date: 29 Jan 2001
Time: 23:26:32

Hi all,

I am eligible for the First Home Buyers $7000 Grant and I am purchasing a house in Melbourne in about 3 weeks time. Problem is I will only live in it for about 2-3 months, before moving into another property (work commitments means I'll be moving into country area).

Does anybody know how long I have to live in the house before I can start renting it out to a tenant and still receive the $7000 grant? Is there any other implication here, do I pay more tax later, am I slugged with something else?, etc.... Thanks.

 

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Thorpedo

Reply: 1
From: Mike .


Re: First Home Buyers $7000 Grant
From: Thorpedo
Date: 02 Feb 2001
Time: 16:14:19

G'day Ben, go for it! You can move out of your house anytime you like & rent it out. The $7000 grant is for first home buyers who move in "within" 12 months. You will be in immediately, so, no probs.

And yes, you can rent it out when you move. Nominate it as your principle residence, even though you live elsewhere, & you can be CGT free for up to 6 yrs. Before 6yrs are up, move back in for awhile, then you can go again for 6yrs, CGT free. All the while, you can enjoy investment deductions like interest, repairs etc. although, the rent is assessable income. Get into it !

Good luck, Thorpedo.

 

[WebBoard]

Jeanette

Reply: 1.1
From: Mike .


Re: First Home Buyers $7000 Grant
From: Jeanette
Date: 30 Jan 2001
Time: 08:28:41

You will still receive the 7K grant. You have to sign a statutory declaration saying that you intend to live in the house within 12 months of purchase. In your case, you will actually be living in the house. If employment takes you away from the house, this won't be held against you.

As for capital gains tax implications, you will establish this as your primary residence by living in the house in the first place. You have up to 6 years away from the home before you lose that CGT entitlement (of course provided that you don't nominate another house as your principal residence). So you have to move back home within 6 years to reclaim it as your principal residence. I think that's how it works.