First Home Buyers Grant Decrease The 6 Mnths Req Place of Residence

AFA on 24/08/2016 - 10:27
Last edited 24/08/2016 - 10:27

Hi Guys,

Just looking for some advice. Im thinking I should just write a letter to the housing commission to see what is possible.

Basically I purchased land and went with a builder who said the house would be built in 6months, so I had planned that in 8 months I would be able to move in (giving two months extra in case of delays). I was going to live there while making the house + garden established to make it a rental after the require 6 months of living for the first home buyers grant.

Ended up having to wait 13 months before I could move in due to delays with the release of the land caused by the land developers and then almost every stage of the building was plagued with delays from contractors being busy to windows and bench tops not being ready. Because of this my future plans to work outside Australia have been affected.

I am thinking I will write a letter asking for a 3 month decrease on the 6 months required because of the long delay in handover from the developers and builders, but wanted to ask your guys opinion.

This is in Western Australia.

Many thanks for sharing your opinions.

Financial

Comments

  • Peter MortgageBroker on 24/08/2016 - 10:31
    +1

    I would suggest it is worth talking the Office of State Revenue, as according to their website "If your circumstances change after you have entered into a contract and you are not able to meet the residency requirements, contact the Office of State Revenue to discuss your circumstances."

    More information can be found at their website: https://www.finance.wa.gov.au/cms/State_Revenue/FHOG/Residen…

    Good luck

    • AFA on 24/08/2016 - 11:19

      Thanks for the info and link, I will check it out.

    • tomsco on 24/08/2016 - 12:46
      +1

      While I will not form an opinion on this, I imagine that the leniency will be more to do with having to sell due to misfortune, rather than having planned to move out after 1 year to turn into an investment loan.

        • tomsco on 24/08/2016 - 20:25
          +1

          Did I miss the OP making this statement or are you reading between the lines?

          Sorry, what I mean is that I imagine if the SRO would give leniency, it would be on cased of people needing to sell due to financial hardship, not leniency because from the very start the buyer only plans on living in there for the bare minimum before turning it in to an IP.

          Yes the OP is in an unfortunate position, and if they've budgeted for the change to IP, there may be some hardship, but this is not the same as someone who losses a job or a partner.

        • AFA on 25/08/2016 - 11:29

          @tomsco:

          Thanks for your views.

          To confirm i was planning to live in the house for about 8 months before renting it out and only decided to build rather than buy existing due to it being cheaper with the Gov grant (wish I brought existing property now)

  • dasher86 on 24/08/2016 - 16:44

    You do not have to live in the property for 6 months to claim it as your Principal Place of Residence.
    As long as you do not have another Principal place during that 6 months and do not 'rent' it out it should be okay.

    You can look into someone paying 'room & board' (non-arms length transaction) for the 6 months.
    Maybe a family member or a friend…

    • AFA on 25/08/2016 - 11:29

      Thanks mate, good point

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