Can you buy an investment property and still be eligible for the FHOG?

Investors don't qualify for a First Home Owner Grant. But you might be able to claim the grant, live in the home and then turn it into an investment later.

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The First Home Owner Grant (FHOG) makes it easier for first-time homeowners to buy or build a home. The rules for the grant vary by state and territory, but generally require you to have not owned a property before, nor claimed any FHOG before. You also need to live in the property as your home for between six and twelve months.

If you buy a property to live in and claim the first home owners grant you generally need to live in the property first to satisfy the requirements of the grant. You can find more information about the rules in each state and territory below.

New South Wales

If you're buying or building a new home in NSW on or after 1 January 2016 you could be eligible for a $10,000 grant.

You must be a permanent Australian resident or citizen and live in the home for at least six continuous months. The rules also state that you will be eligible for the grant if "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."

Read more about the NSW first home owners grant

Victoria

A $10,000 First Home Owner Grant is available to applicants buying or building a new home valued up to $750,000 in Victoria, or $20,000 in regional Victoria. The grant is not for investment. To be eligible for the grant, you must not have:

  • Received a First Home Owner Grant in Australia
  • Owned a home in Australia, either jointly or separately, prior to 1 July 2000
  • Occupied an Australian home in which either of you acquired a relevant interest on or after 1 July 2000 for at least six continuous months

At least one applicant must occupy the home as their principle place of residence for at least 12 months, starting from within 12 months from settlement. You could convert your property to an investment after you have satisfied this requirement and keep the grant.

Queensland

The Queensland Government’s First Home Owner Grant offers between $15,000 and $20,000 towards buying or building a brand new home with a value of less than $750,000. However, in order to qualify for the grant, you or your spouse cannot have previously owned property anywhere in Australia.

You must live continuously in the home for six months, and move in within 12 months of purchase.

Western Australia

In Western Australia first home owners can access a grant of up to $10,000. To be eligible for the grant:

  • You and/or your spouse cannot have owned residential property anywhere in Australia before 1 July 2000
  • You need to live in the property as your home for at least six continuous months.

South Australia

South Australia's First Home Owner Grant offers up to $15,000 for the purchase of a new residential property (not an investment). You must be able to meet all of the following criteria:

  • You must never have owned an Australian residential property before 1 July 2000
  • You must live in the property as your home for at least six continuous months.
  • You must never have occupied a residential property, in which they acquired a relevant interest after 1 July 2000, for at least six consecutive months

Tasmania

Tasmania's State Revenue Office administers the $20,000 First Home Owner Grant for the purchase and construction of new homes by first home owners. The grant will shrink to $10,000 is buying from 1 July 2020 onwards.

You must:

  • Be buying or building a new home
  • Live in the property as your home for at least six months

To be eligible for the grant, you and your spouse/partner must:

  • Not have owned a home in Australia before 1 July 2000; and
  • Not have owned and occupied (for more than six months) a home in Australia after 1 July 2000

Northern Territory

The Territory Revenue Office offers a $10,000 First Home Owner Grant for the purchase or construction of new homes. You will only be eligible for the grant if:

  • You have not owned any residential property in Australia prior to 1 July 2000.
  • You have not occupied a residential property in Australia that was owned by you or your spouse on or after 1 July 2000.
  • You must live in the property for a continuous period of six months.

ACT

The ACT Revenue Office administers the territory’s $7,000 First Home Owner Grant. You must not have previously received a first home owners grant anywhere. You must be:

  • Buying or building a new or substantially renovated home
  • Living in the home for a continuous period of 12 months

To qualify for the grant, you and your partner/spouse must:

  • Not have previously owned or held a relevant interest in an Australian residential property prior to 1 July 2000;
  • Not have occupied a residential property in which you acquired a relevant interest anywhere in Australia on or after 1 July 2000 but before 1 January 2004; and
  • Not have occupied, for at least six consecutive months, a residential property in which you acquired a relevant interest anywhere in Australia on or after 1 January 2004

For more information about eligibility for the First Home Owner Grant, contact the revenue office in your state or territory, and read our guide on the grant.

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Athena Variable Home Loan P&IInvestment≥ 40% Deposit

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UBank UHomeLoan Fixed P&IInvestment 1Y Fixed≥ 20% Deposit

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2.14%
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Bank of Melbourne Fixed Rate Home Loan with Advantage Package P&IInvestment 2Y Fixed≥ 20% Deposit

Bank of Melbourne Fixed Rate Home Loan with Advantage Package
2.64%
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$605
$3,000 refinance cashback.
Lock in a low rate for two years with this competitive investment package loan. Refinancers borrowing $250,000 or more can get a $3,000 cashback (Apply by 30 November 2021. Terms and conditions apply). Refinancers Only.

Easy Street Fixed Home Loan IOInvestment 3Y Fixed≥ 5% Deposit

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loans.com.au Smart Booster Discount Investor Variable Home Loan P&IInvestment≥ 20% Deposit

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1.99%
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Nano Variable Home Loans IOInvestment≥ 25% Deposit Refi Only

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2.59%
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$601
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Well Home Loans Balanced Fixed Home Loan P&IInvestment 3Y Fixed≥ 10% Deposit

Well Home Loans Balanced Fixed Home Loan
2.34%
2.25%
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$582
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homeloans.com.au Low Rate Home Loan with Offset IOInvestment≥ 40% Deposit

homeloans.com.au Low Rate Home Loan with Offset
2.34%
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HSBC Home Value Loan P&IInvestment≥ 30% Deposit

HSBC Home Value Loan
2.27%
2.28%
  • App: $0
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$577
$3,288 refinance cashback offer
This variable rate loan is available for property investors with 30% deposits. This loan has very few fees. Eligible refinancers borrowing $250,000 or more can get a $3,288 cashback. Terms and conditions apply.

Easy Street Fixed Home Loan IOInvestment 2Y Fixed≥ 5% Deposit

Easy Street Fixed Home Loan
2.29%
3.12%
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$578
Investors can fix their rate for 2 years while making interest-only repayments. Available with a 5% deposit.

UBank UHomeLoan Variable Rate P&IInvestment≥ 20% Deposit

UBank UHomeLoan Variable Rate
2.34%
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Easy Street Fixed Home Loan IOInvestment 1Y Fixed≥ 5% Deposit

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homeloans.com.au Low Rate Home Loan with Offset P&IInvestment≥ 20% Deposit

homeloans.com.au Low Rate Home Loan with Offset
2.14%
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$567
This investment loan keeps fees low, has a sharp interest rate and comes with a 100% offset account. This loan is not available for construction.

UBank UHomeLoan Fixed IOInvestment 3Y Fixed≥ 20% Deposit

UBank UHomeLoan Fixed
2.79%
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$617
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Well Home Loans Balanced Variable P&IInvestment≥ 20% Deposit

Well Home Loans Balanced Variable
2.17%
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$569
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UBank UHomeLoan Fixed P&IInvestment 5Y Fixed≥ 20% Deposit

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3.04%
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Athena Variable Home Loan P&IInvestment≥ 30% Deposit

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2.49%
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UBank UHomeLoan Variable Rate IOInvestment≥ 20% Deposit

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2.60%
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Athena Variable Home Loan P&IInvestment≥ 20% Deposit

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48 Responses

    Default Gravatar
    HannahNovember 17, 2018

    I am looking to purchase my first house in Rural Victoria as an investment property and have renters ready to move in. I do not plan to move into this property.
    If I opt to pay stamp duty on this home, am I eligible to get the FHOG on a property later down the track?

      Avatarfinder Customer Care
      JoshuaDecember 4, 2018Staff

      Hi Hannah,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      Typically, if purchase an investment property in Victoria on or after 1 July 2000 and you didn’t live in it for a period of six consecutive months, you may be eligible for the FHOG. It would also be a good idea to directly get in touch with the FHOG office and check other eligibility criteria and obtain more information.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

    Default Gravatar
    LynnOctober 12, 2018

    If I am granted a FHOG in Victoria and not able to move in right away after settlement, can I rent it out for 11 months or so? But will definitely move in to live as my principal home within the cut off of the 12 months deadline. Is this acceptable to the Victoria state government?

    I note the NSW and SA specifically allows renting out as long as one moves in within the deadline. But Vic government just keep silent and do not indicate one way or another.

      Avatarfinder Customer Care
      JeniOctober 13, 2018Staff

      Hi Lynn,

      Thank you for getting in touch with Finder.

      According to the Victoria’s State Revenue Office, you (or at least one applicant) must occupy the home as your PPR for at least 12 months, commencing within 12 months of settlement or completion of construction. After the said period and you want to rent out your house, that will be fine. For further clarification on this, you may call the SRO help centre on 13 21 61 during their business hours from 8.30am-5pm (AEST), Monday to Friday, excluding public holidays.

      I hope this helps.

      Please feel free to reach out to us if you have any other enquiries.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

    Default Gravatar
    CJSeptember 12, 2018

    I have owned an investment property in NSW for 4years as it has only been an investment property and I have never lived in it. Am I still eligible for the first home owners grant in NSW if my new property is for me to live in as an owner occupier?

      Avatarfinder Customer Care
      JhezSeptember 14, 2018Staff

      Hello CJ,

      Thank you for your comment.

      Please note that the eligibility for FHOG may vary per state. The FHOG is only available for the purchase of owner-occupied properties, not investment properties. So, if you have owned an investment property before, you may still be eligible for the grant.

      You may want to check our guide to the First Home Owner Grant in NSW. To apply, please go through the NSW Office of State Revenue.

      Should you wish to have real-time answers to your questions, try our chatbox on the lower right corner of our page.

      Regards,
      Jhezelyn

    Default Gravatar
    HARISHMay 14, 2018

    Hi,

    We had purchased a property in 2012. We lived in for about 2 -3 years and then moved interstate. Since then we have been renting and have lease out the property. We have been paying investment property interest rates. My question is, If we are to buy another Owner occupied property, are we eligible for FHOG and Stamp duty exemption?

    Thanks

      Default Gravatar
      NikkiMay 15, 2018

      Hi Harish.

      Thanks for your message and for visiting Finder.

      The amount you receive from the FHOG and whether or not you are eligible for the grant varies between states and territories, but you can never receive a grant if you’ve already received one elsewhere in Australia.

      For more information, you may view our state-by-state guide to the First Home Owners Grant.

      Hope this was helpful. Don’t hesitate to message us back if you have more questions.

      Cheers,
      Nikki

    Default Gravatar
    BBMay 1, 2018

    I am buying property cost $799k in Victoria and I would like to buy another property around $600k within 6 months. so, if i buy 2nd property in less than six months, i will eligible for FHOG and stamp duty exemption for 2nd property?

      Avatarfinder Customer Care
      JoshuaMay 3, 2018Staff

      Hi BB,

      Thanks for getting in touch with Finder. I hope all is well with you today.

      Please understand that the FHOG is generally made for first-time home buyers. So, in your case, if you have already bought a residential property, then it is most likely that you won’t be eligible for FHOG.

      In terms of stamp duty, it also depends on where you reside or where you buy the property. The amount of stamp duty you pay is determined by the state or territory that you live in, the amount you pay for the home, and the type of property that you are buying. Depending on your personal circumstances you may qualify for an exemption on stamp duty. Kindly press the link above to learn more.

      I hope this helps. Should you have further questions, please don’t hesitate to reach out again.

      Have a wonderful day!

      Cheers,
      Joshua

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