FHOG, Another State, Finance

Asking for a friend.

He was in Perth until a few months ago, he moved East for a better Job but intends to come back early next year.

He is finally ready to bite the bullet and buy a house in Perth. Will he still be able to claim FHOG in WA if he is working in Sydney at the time of the loan?

1. Issue with Dept of Commerece complaining that he is not a WA resident.
2. Issue with Bank complaining the same and not doing a 95% PPOR loan.

 

The problem is the bank will ask him who his employer will be when he moves back and they'll want evidence to back it up. They're not going to give a PPOR loan to someone who's not currently employed in reasonable commuting distance from the proposed PPOR.

Your friend could purchase it as an investment property, then apply for the applicable grants or rebates when he moves there, but I suspect that by putting a tenant in the property, it would no longer be eligible for the grant or stamp duty rebates.

 

in WA you can own investment properties before buying a PPOR, so it may work.

Otherwise, he can buy as an IP then buy a PPOR and get the grants when he moves back.

 

Well he has 12 months to move into the property and start the 6 month residency requirement.

 

Yes, but as above he can't get a loan for a ppor while he is working interstate.

 

Does telling the bank whether it's an investment or PPOR have any impact on the FHOG ruling in this instance?

Could he not the purchase it as an investment and then apply at a later date for his FHOG concessions?

 

lenders are 'agents' for fhog so most fhb apply as they get the loan thru the bank. If the client wanted to wait until after settlement they could approach the sro directly and apply for the fhog.
In this case the fhog money couldn't be used towards the deposit, because it's after settlement.
There are different lending policies that apply at approval whether it's inv or oo and different interest rates afterwards.