First home buyer grant but.....

I have never brought a property for residential purposes. However I have previously purchased investment property. Does the first home owner grant still apply? How much is it these days? In nsw. Thanks

 

I know in Queensland and Victoria if you have never lived in any of your investment properties you should be eligible for the FHOG.

Go onto the state revenue office of NSW website and it will tell you if you are eligible or not.

 

In Victoria you're definitely still eligible for the grant or stamp duty discounts if you own an investment property, I've gone so far as to read the wording in the act and it's quite clear on this. It's been a long time since I've facilitated a grant in NSW, but start by reading the FHOG application form and follow any references it has in regards to the entitlements and definitions of a first home buyer.

 

First Home Owner Grant | Office of State Revenue

Possibly...All applicants and/or their spouse/de facto (even if they do now own the property being acquired) have not previously owned a residential property jointly, separately or with some other person in any State or Territory of Australia, and occupied that property for a continuous period of at least six months.

OSR would be best contacted to confirm the application of their rules.

 

Agree with Paul - best source for this info is the SRO. Give them a buzz and explain your scenario - they're usually quite helpful.

Cheers

Jamie

 

ok thank you

 

Hi, I've purchased one IP already in my name and my fiancee and I getting married soon.
My question is now is she still eligible to get the first home buyers grant when she wants to buy a property in NSW? Otherwise we may delay the wedding and need to unregister the defacto relationship so she will be eligible? Thanks

 

OSR website says

you or your spouse (including de facto spouse) have never held a relevant interest in any residential property in Australia prior to 1 July 2000. However, you may be eligible if you or your spouse, including de facto spouse, have only had a relevant interest in any residential property in Australia on or after 1 July 2000 and you have not resided in that property for a continuous period of at least 6 months.

A scheme to defraud by misrepresenting your relationship may be a offence. It could require legal advice to determine whether the word spouse / defacto spouse applies at the relevant date.

 

But it seems the NSW First Home Buyer stamp duty exemptions don't apply which is unfair for any First Home Buyers who never bought a PPOR in the past: First Home - New Home scheme | Office of State Revenue says:

• you or your partner have not previously owned residential property in any form in any State or Territory of Australia

 

Laws dont have to be fair. As a taxpayer I think its fair that double dipping etc is not allowed. It is a "first home buyer" concession after all.

 

Also be aware of the OSR's definition of de-facto (at least when I last looked into it 10 years ago) - if you have lived together you are de-facto...

Jason

 

Sounds fair to me.

 

The definition is different to this:

s71(4) Duties Act NSW
DUTIES ACT 1997 - SECT 71 Restrictions on eligibility-previous ownership of residential property or first home concession

(4) For the purpose of this section, a person is the person if:
(a) they are legally married, or
(b) they are living together as a couple in a de facto relationship.

 

which was why I said legal advice may be needed.

 

Don't people who are buying their 1st PPOR and never owned property double dipping if they get the FHOG and get Stamp Duty Exemptions as well? Whereas someone who has an investment property will miss out on any government handout.

Anyway if you have an investment property held in a unit or discretionary trust that would mean you would be allowed to get the Stamp Duty Exemption because you personally never held any property in your personal name.

 

You don't have property held in a discretionary trust.

A trustee owns property on behalf of the beneficiaries. The trustee may be yourself or you may be a beneficiary - or both. If you own a property as trustee for others then this doesn't count for these purposes as you are not the beneficial owner.

 

One of the strategies to preserve access to the FHOG is to use a trust prior to personal ownership of property. The extra costs etc and limits if a property is neg geared often mean its not that much of a benefit (if any). Personal advice would be recommended

 

This seems to me the most recent scheme: First Home Owner Grant (New Homes) scheme
And states this:

• you or your spouse (including de facto spouse) have never held a relevant interest in any residential property in Australia prior to 1 July 2000
  
  However, you may be eligible if you or your spouse, including de facto spouse, have only had a relevant interest in any residential property in Australia on or after 1 July 2000 and you have not resided in that property for a continuous period of at least 6 months.
  

 

I'm in exactly the same situation right now. I'm not sure about the NSW homeowners grant, but in QLD for stamp duty concession, we actually bought the property as 'tenants in common'. This allowed her to her to have a 99% share and myself a 1% share. Because she has never owned property, this meant that we only paid 1% of the stamp duty.