1st home owner grant

[EstatePreneur]

Hi everyone,

I and my friend might plan to buy a new IP together as partners. He owns a house (not fully paid, still on mortgage), while I myself have never bought any property before.

I was thinking and planning not to use my 1st home owner grant when buying our new IP with my friend. Is this doable?

My question is will I get and be able to use that $7000 1st home owner grant later when I buy another IP for myself after I and my friend buy our IP?

Cheers.

 

[Simon]

You need to understand this fully. Worse case is you may not get the FHOG and lose it forever.

If you never live in the home then you should be OK to get the FHOG later.

I must admit to not being keen on shared investements and mortgages either. You share the debt but are responsible for the entire debt. This can stop you getting further loans. Even worse is that you may have a divergence of goals with your IP partner.

Cheers,

 

[alexlee]

I agree with Simon on the buying with a friend thing. My advice is, don't do it. If you can buy an IP on your own, even if it's a cheaper / smaller property, it might be better. You have to think about all the scenarios: what if your friend gets married / has a kid / gets divorced / loses his job / moves / needs the money etc etc and his circumstances change? What if he wants to sell and you don't, and vice versa? What if you want to refinance and he's not comfortable with more debt? In general there are too many problems in partnering unless you have a very clear agreement set out. And even then, those agreements might lead to problems unless you're both very professional about it. If you don't have much experience in property, you won't be.
Alex

 

[Todd]

Hi,

The FHOG is not available for use on an IP. If you buy and IP now, you can still claim the FHOG at a later date, providing its still on offer, and that you satisfy the requirements for FHO's which vary state to state.

For information please see here for QLD FHOG
and here for general non state specific FHOG info.

As Simon and Alex have pointed out, try and buy the IP in your own name if you can, its the way to go if you can do it.

 

[TheCamel]

my understanding of the FHOG is once you hold property in your name, you cannot receive the FHOG.. this includes IPs.

Additionally,y ou have to live in the property for 6 months within 12 months.
and if any of the buyers have previously owned property, you cannot get the grant.

but i might be wrong...

 

[Simon]

my understanding of the FHOG is once you hold property in your name, you cannot receive the FHOG.. this includes IPs.

Additionally,y ou have to live in the property for 6 months within 12 months.
and if any of the buyers have previously owned property, you cannot get the grant.

but i might be wrong...

You are correct about being wrong

If you own an IP post Jun 2000 and never lived in it then you still have the FHOG. New changes have removed the live in requirement of an IP to less than 6 months. I need to check whether that was backdated or just for the future.

Cheers,

 

[tigerGT]

ok but....

What if I have bought a house before? Now I am engaged and want to buy one with the fiance. I know I have lost my 7k FHOG but caN I Still claim for the first home owner plus benefits for the stamp duty exemptions for first home buyers because looking at the condition fact sheet it staTES:

"yOU QUALIFY FOR THE SCHEME IF AT LEAST ONE OF THE PURCHASERS HAS NEVER OWNED AND OCCUPIED A RESIDENTIAL PROPERTY..."

Does at least one mean that It is acceptable?

thanks

TigerGT

 

[zazoo]

I asked the same question 2 years ago. My mate and I decided to go halves in a property, renovate and sell. Shrtly after the purchase and comencement of reno's, he met a girl, went overseas for 18 months and got married, now with child. We always agreed on 50/50 profit split, so now when the time is to sell, you can see the problems. no labour input was given on his behalf. To keep things clean and friends, I will go ahead with the 50/50 split. I had troubles getting further finance as the others have mentioned, I am on paper as owing the whole morgage, even though we are partners.
Buying against the house is also dificult. My advice is, I should have listened when I asked the same question... But hay , you learn and I definatly wont do a partnership again.

 

[Simon]

What if I have bought a house before? Now I am engaged and want to buy one with the fiance. I know I have lost my 7k FHOG but caN I Still claim for the first home owner plus benefits for the stamp duty exemptions for first home buyers because looking at the condition fact sheet it staTES:

"yOU QUALIFY FOR THE SCHEME IF AT LEAST ONE OF THE PURCHASERS HAS NEVER OWNED AND OCCUPIED A RESIDENTIAL PROPERTY..."

Does at least one mean that It is acceptable?

thanks

TigerGT

George,

Can you link me to that sheet?

I believe that if one person has owned a residential property and occupied it (in 2000 they allowed you to own an IP and never occupy it) then you are ineligible (thanks Les) for the grant.

Cheers,

 

[Les]

G'day Simon,

then you are illegible for the grant.

I think you might mean IN-eligible for the grant, yes ??? As in "you CAN'T get it in those circumstances"....

Regards,