Wrap - Are they eligible for FHOG?
- Thread starter Brizza
- Start date
Hi,
The long answer is read this -> http://www.austlii.edu.au/au/legis/nsw/consol_act/fhoga2000250/s13.html#eligible_transaction
Specifically...
(5) An eligible transaction is "completed"when:
(a) in the case of a contract for the purchase of a home:
(i) the purchaser becomes entitled to possession of the home under the contract, and
(ii) except in the case of a terms contract, if the purchaser acquires an interest in land under the contract that is registrable under a law of the State the purchaser's interest is registered under that law, or
(b) in the case of a contract to have a home built—the building is ready for occupation as a place of residence, or
(c) in the case of the building of a home by an owner builder—the building is ready for occupation as a place of residence.
Basically, they must have a legal registered interest, ie a valid contract. Possession in generally deemed to have similar rights as any ordinary home owner, ie
- can rent place
- can improve place
- must notifiy mortgagee of changes to property
- must notify mortgagee of leases
- must notify mortgagee of long term vacancy (ie holidays)
(that's right - everyone must tell their bank if the home is empty for some time so they aware of the risk of vandals etc)
Regards
Michael
The long answer is read this -> http://www.austlii.edu.au/au/legis/nsw/consol_act/fhoga2000250/s13.html#eligible_transaction
Specifically...
(5) An eligible transaction is "completed"when:
(a) in the case of a contract for the purchase of a home:
(i) the purchaser becomes entitled to possession of the home under the contract, and
(ii) except in the case of a terms contract, if the purchaser acquires an interest in land under the contract that is registrable under a law of the State the purchaser's interest is registered under that law, or
(b) in the case of a contract to have a home built—the building is ready for occupation as a place of residence, or
(c) in the case of the building of a home by an owner builder—the building is ready for occupation as a place of residence.
Basically, they must have a legal registered interest, ie a valid contract. Possession in generally deemed to have similar rights as any ordinary home owner, ie
- can rent place
- can improve place
- must notifiy mortgagee of changes to property
- must notify mortgagee of leases
- must notify mortgagee of long term vacancy (ie holidays)
(that's right - everyone must tell their bank if the home is empty for some time so they aware of the risk of vandals etc)
Regards
Michael
Thanks for your responses.
In relation to
- must notify mortgagee of leases
If you had a mortgage for a house that originated as an owner-occupier loan, but a few years later, leased it out, I'm assuming from that statement that you are oblidged to notify the bank.
What effects are likely to happen from notifying the bank, if any?
In relation to
- must notify mortgagee of leases
If you had a mortgage for a house that originated as an owner-occupier loan, but a few years later, leased it out, I'm assuming from that statement that you are oblidged to notify the bank.
What effects are likely to happen from notifying the bank, if any?
Hi,
Leasing a house is known in general terms as an "investment property", you will find that most (if not all) mortgages contain clauses for ALL contigences so the lenders are never surprised, but more importantly...
...if they are put into a situation they do not like, they have a clause for every occasion that will legally allow them to terminate the contract and request their money back.
In most cases this will never happen, however their clauses (insurance policy) exist just in case.
If you don't know what you need to say, first read your mortgage document, then ask your lender, each is different.
Regards
Michael G
Leasing a house is known in general terms as an "investment property", you will find that most (if not all) mortgages contain clauses for ALL contigences so the lenders are never surprised, but more importantly...
...if they are put into a situation they do not like, they have a clause for every occasion that will legally allow them to terminate the contract and request their money back.
In most cases this will never happen, however their clauses (insurance policy) exist just in case.
If you don't know what you need to say, first read your mortgage document, then ask your lender, each is different.
Regards
Michael G
