Eligibility for First Home Buyer Concessions

Hi there PC community.

Basically I am planning to purchase my first ever property as an investment but would like to renovate it plus build a granny flat in the back yard with individual driveways, utility metering and a fence separating the two.

During this process I would reside in the property as my PPOR, living there permanently for at least the first 6 months whilst maintaining and preparing the property to be tenanted as well as adding a granny flat to the back garden.

Now my question is would I be able to claim the stamp duty and lenders mortgage insurance concessions (after 1st Jan, 2020) for first home buyers whilst living in the property as my PPOR instead of my parents house for the initial 6 months or longer whilst the house is being renovated and granny flat added?

Will these concessions become payable when I begin renting the two dwelling’s out after 6 months and therefore turning the property into an investment property?

I do not wish to break any laws this is merely a hypothetical question and I appreciate any feedback.

Cheers, Finn

 

Each state has different rules. The Office of State Revenue website for your state should assist.

 

I am looking to purchase in New South Wales. It is stated that you must move in within 12 months and live in for 6 continuous months.

My uncertainty is in regards to the fact I will be renovating and constructing a second dwelling on the property during those 6 months with the intent to use as an investment property and rent out.

Could this deem me ineligible for the first home buyer's benefits?

 

Or just look at the legislation:

FIRST HOME OWNER GRANT (NEW HOMES) ACT 2000 (NSW)
FIRST HOME OWNER GRANT (NEW HOMES) ACT 2000 - As at 1 July 2018 - Act 21 of 2000



For stamp duty concessions see
DUTIES ACT 1997 (NSW)
See Part 8
DUTIES ACT 1997 - As at 1 July 2019 - Act 123 of 1997