Hi everyone,
Just wanted to know if its legal to rent another property whilst receiving the FHOG?
Asking for a friend as they are moving to another city in WA and they have a house in Perth for which they got the FHOG.
They will return to Perth on the weekends to live in their house, but want to rent a place while they live away from Perth.
Thanks guys.
Just wanted to know if its legal to rent another property whilst receiving the FHOG? = Technically No
I believe you have to live in you PPOR for six months to be eligible for FHOG… and of course, previously not owning a home before.
However they have to prove that you did not live in your PPOR for six months if they want to revoke it :-)
Cheers
That is no problem, as your keeping the place a ppor, and not renting out.
She could rent 100 places if she wanted that's her business.
I don’t know anything at all about WA FHOG requirements. I know about VIC, so I will answer based on that, that may give your friend to do more research on the WA provisions.
1. Residence requirement now is one year. It has been since 2013.
2. You need to actually occupy and use the property as your PPR. Merely considering a property as your PPR is not sufficient. onus is on you to prove that you compiled with your obligations.
3. If you don’t live in your property, trust me they will know. This may trigger an investigation, and it will sufficiently show where you lived. I cannot tell you what they will look into, but you would be surprised what they will, and your friend is not going to be the first person who ever came up with the argument.
4. Returning to the property every weekend just to retain the grant may prove more expensive than the grant itself.
5. In VIC a person also receives stamp duty concession for buying their first home. Similar residence requirements apply for these concessions too.
6. In order to be eligible, you and your partner shouldn’t have ever owned any home in Australia, and shouldn’t treat a property as your PPR any where in the world.
7. In VIC the Commissioner has a discretion to vary the residence requirements, which may be in shape of additional time ain llowed to move in or reduced residence time. But these would be allowed case of genuine circumstances, moving for employment or promotion may not be acceptable reasons.
I guess if they are not going to rent their own place out, it should be ok as that would still be considered their primary place of residence.