Investment Property, FHOG & Stamp Duty Exemption + Upcoming Marriage... Questions

[testingw00]

Hey Guys,

Long time reader, first time poster - the amount of information I've gained from reading the posts on this forum has been excellent! I'm hoping this thread will help others who are in my situation now and in future.

I've got a question regarding stamp duty exemptions in NSW, marriage and the FHOG.

I've recently purchased an investment property under my name and should be eligible for the FHOG. I will need to live in it for 6 months initially then plan to move out.

I am hoping my partner will be able to purchase an IP or a PPOR under her name within the next 12 months. I intend to contribute to the deposit as much as possible to fast-track this goal

Now the tricky part is we have been talking about getting engaged very soon but we're not sure if this will void us from receiving stamp duty exemption and FHOG for her.

Does anyone know what will happen to the FHOG + Stamp duty if… she purchases the property, then soon after settlement we get married? Will we no longer be eligible for the FHOG + stamp duty exemption and be asked to pay it all back?

I know that we will not be eligible for the FHOG + stamp duty exemption if we got married before she purchases her first property.

Any help is greatly appreciated.

Cheers.

 

[alexlee]

Forgetting the engagement and marriage for a moment. Are you in a de facto relationship? e.g. are you living together, sharing bills, that sort of thing? The legal rule for the FHOG is not engagement or marriage, but whether you're a de facto partner.

 

[wylie]

Forgetting the engagement and marriage for a moment. Are you in a de facto relationship? e.g. are you living together, sharing bills, that sort of thing? The legal rule for the FHOG is not engagement or marriage, but whether you're a de facto partner.

And I wouldn't try to hoodwink them. They seem to very keen to check up on people and ask for repayment plus a hefty fine. Is it worth it?

 

[testingw00]

Thanks for the quick responses.

No we are not in a defacto relationship.
We both live with our parents and all bills are under individual names (not joint). We will live together when married.

I wouldn't want to risk getting an unwelcome fine in the future.

The other thing I can think of doing is get married, have both her and I save up as much as possible, using the equity in my IP + a large deposit to fund our PPOR - thus eliminating her on being eligible for any grants/exemptions.

We won't make much of a gain financially, and will need to put more of our hard-earned money into getting a PPOR if going down this option.

What are your thoughts?

Hope this helps.

Cheers.

 

[alexlee]

I've recently purchased an investment property under my name and should be eligible for the FHOG. I will need to live in it for 6 months initially then plan to move out.

I am hoping my partner will be able to purchase an IP or a PPOR under her name within the next 12 months. I intend to contribute to the deposit as much as possible to fast-track this goal

Obviously, once you're married you can't have two PPORs. Do your partner would have to live in the place she buys for at least 6 months before switching it into an investment property.

Do the numbers. Your partner (and yourself) will be losing 6 months of rent, and 6 months of deductions including interest and depreciation. Is that worth the FHOG?