[Vic] FHOG occupancy requirement change announced

[start-up]

As per this article in the Herald Sun http://goo.gl/PcTb8 Ted Baillieu's state government has announced the occupancy requirement for the first home owners grant will be extended from six months to 12 months as part of $750 million in budget cuts.

What purpose does this serve in terms of saving the government and tax payers money? It seems like it's designed to impede first home buyers who wish to convert their purchase to an IP.. how does this achieve anything positive for the government or the public? Perhaps I'm missing something.

As someone directly affected by this (I will be applying for the FHOG and then converting the property to a IP after six months) I'm hoping the legislation won't take affect until the next financial year so I can process my grant through the existing legislation.

 

[Bigtone]

As per this article in the Herald Sun http://goo.gl/PcTb8 Ted Baillieu's state government has announced the occupancy requirement for the first home owners grant will be extended from six months to 12 months as part of $750 million in budget cuts.

What purpose does this serve in terms of saving the government and tax payers money? It seems like it's designed to impede first home buyers who wish to convert their purchase to an IP.. how does this achieve anything positive for the government or the public? Perhaps I'm missing something.

As someone directly affected by this (I will be applying for the FHOG and then converting the property to a IP after six months) I'm hoping the legislation won't take affect until the next financial year so I can process my grant through the existing legislation.

don't forget the stamp duty concessions are already at 12 months so if you leave after 6 months you have to pay that back under the current policy anyway

 

[Aaron_C]

As per this article in the Herald Sun http://goo.gl/PcTb8 Ted Baillieu's state government has announced the occupancy requirement for the first home owners grant will be extended from six months to 12 months as part of $750 million in budget cuts.

It's just like Wayne Swan making companies pay tax monthly instead of quarterly...fudging numbers without actually changing the tax etc to make it less politically damaging. Same thing they did with making stamp duty payable 30 days rather than 90 days.

 

[wategos]

It's supposed to be a first home owners grant, not investor grant. It should be increased to 3 years.

 

[start-up]

It's supposed to be a first home owners grant, not investor grant. It should be increased to 3 years.

I can't afford a property within the 25km south-east of Melbourne's CBD. Renting out rooms in my first home or turning it into an IP for a few years is the only viable option if I want to eventually reside in this region.

I imagine most average income earners are in the same boat.

 

[markfrazer89]

don't forget the stamp duty concessions are already at 12 months so if you leave after 6 months you have to pay that back under the current policy anyway

how much would we save on stamp duty as a first home buyer?

 

[Ed Barton]

What purpose does this serve in terms of saving the government and tax payers money? It seems like it's designed to impede first home buyers who wish to convert their purchase to an IP.. how does this achieve anything positive for the government or the public? Perhaps I'm missing something.

Due to unforeseen circumstances some who receive the grant will be forced to repay it if they are unexpectedly unable to fulfill the residence requirement. Increasing the time required increases the likelihood of that happening saving the govt money.

 

[Nemo30]

It's supposed to be a first home owners grant, not investor grant. It should be increased to 3 years.

Think 3 years is too long, but agree with the sentiment.

 

[Deltaberry]

Impede PPOR converting to IP? Hahaha isn't this a first home owner's grant rather than a first investment property grant?

 

[7smurfs]

I for one am enjoying the first home/investment grant hand out

On a serious note, I'm pretty sure the government/ATO are fully aware that there are quite a few first time purchasers who are taking advantage of this - which is why they have already cut down on the grant for established property in VIC.