Renting while buying a first home

Hi guys,

I'm looking to buy my first home in the next 6 months, I'm currently renting a really nice roomy place with friends in the Newcastle CBD and whenever I buy I'm not looking to move out as I don't want to give up the space and inner city lifestyle here which I won't be able to afford to buy on my budget.

I'm trying to find out more information on the legality of buying my first home as an owner occupier, while not moving in to my new place (you're meant to live in the new owner occupier house for 6 months minimum in the first 12 months) but rather staying put and renting out my new place privately

I know as an owner occupier your proof of residence may be a utility bill and I'm not sure what else. I know any rent/board money can't be used to service the apartment and you cannot claim any tax on any rent as an owner occupier.

Alternatively there is the investment loan option however this comes with budget constraints with the 10% deposit required and would be limited to regional towns (which still isn't a bad way to go right now)

Any help much appreciated!

 

As long you don’t claim and first home owner benefits such as grants, reduction in stamp duty etc you can do whatever you want, but you would need to treat it like an investment and pay tax on the rental income.

If you do claim the first home owner benefits but have no intention on living there for 6 months in the first year, your essentially committing fraud and may have to pay it back with a penalty/interest.