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

If you buy an investment property, are you still eligible for the First Home Owner Grant? Well, this depends on where you live.

Can you get an investment property and still get the FHOGThe First Home Owner Grant (FHOG) makes it easier for first-time homeowners to buy or build a home. Introduced in 2000, it was designed to counter the detrimental effect of the goods and services tax (GST) on buying or building a home.

The grant is offered as a lump-sum payment to first home buyers who buy or build a residential property and then live in it. 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.

The FHOG is only available for the purchase of owner-occupied properties, not investment properties. So if you decide to buy an investment property first and then later decide to buy your first home, will you still be eligible for the grant on the latter purchase?

To find the answer, you’ll need to look at the grant regulations specific to where you live.

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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32 Responses

  1. Default Gravatar
    rizOctober 30, 2017

    I have investment property in nsw& planning to sell that property & buy new property in nsw.
    so could u pls tel me I am eligible for first home garand / stamp duty benifite
    thank u

    • Staff
      JoanneOctober 30, 2017Staff

      Hi Riz,

      Thanks for reaching out.
      You may visit this guide to the First Home Owner Grant in NSW.
      Generally, this is the list of among other criteria that you need to satisfy in order to qualify:
      *Each applicant is a natural person (e.g. not a company)
      *At least one applicant is a permanent resident or an Australian citizen
      *Each applicant must be aged 18 years or older
      *All applicants have not owned a residential property in Australia before July 2000
      *All applicants have not previously owned a residential property for a continuous period of at least six months
      *All applicants have not previously received a grant under the First Home Owner Grant Act 2000 in any state or territory
      *At least one applicant will occupy the home as their principal place of residence for a continuous period of 6 months

      Furthermore, should you want to know if you’re eligible for the FHOG, please visit the NSW State Office of Revenue and review the eligibility requirements for the scheme you’d like to apply for.

      Cheers,
      Joanne

  2. Default Gravatar
    MelissaOctober 23, 2017

    I have an investment property in Victoria and now I wish to buy a principal place of residence price is $550,000. Can I get FHOG?

    • Staff
      ArnoldOctober 24, 2017Staff

      Hi Melissa,

      Thanks for your inquiry

      The page above states

      Victoria’s State Revenue Office is responsible for offering the $10,000 grant to applicants buying or building their first new home. 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

      So if you purchased your investment property 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. Please check the eligibility criteria for more information.

      Hope this information helps

      Cheers,
      Arnold

  3. Default Gravatar
    GinaOctober 9, 2017

    Hi,

    I live in NSW and have a investment property in qld in which i purchased 2 years ago i have never lived in this property and it is purely for investment purposes only. I have never claimed the grant before and
    I am now purchasing my first home to live in permantly am i still able to get the first home owners grant ?

    • Staff
      JudithOctober 10, 2017Staff

      Hi Gina,

      Thanks for contacting finder, a comparison website and general information service.

      Whether or not you are eligible for the grant varies between states and territories. First, you have to consider in which state/territory you are purchasing.

      Please be guided accordingly on the following:

      If you are purchasing a home in Queensland, you may not qualify for the Great Start Grant because you have previously purchased an investment property anywhere in AU.

      If you are purchasing a home in NSW, you may be eligible for the First Home Owner Grant if you’ve only had a relevant interest in any residential property in Australia on or after 1 July 2000, if you never resided in that property for at least six continuous months and if you’ve never claimed the grant.

      I hope this helps.

      Regards,
      Judith

    • Default Gravatar
      GinaOctober 10, 2017

      Thank you Judith, this helps a lot!

      Do you have the criteria which determines whether I may or may not be eligible in NSW or could you point me the right direction in to where I may find this criteria ?

      Thank you.

    • Default Gravatar
      JonathanOctober 11, 2017

      Hello Gina,

      Thank you for your inquiry, glad our previous response was helpful. :-)

      To qualify for the First Home Owner Grant, you must meet the following eligibility criteria:

      – Each applicant is a natural person and not a company or trust.

      – At least one applicant is a permanent resident or Australian citizen.

      – Each applicant must be at least 18 years of age.

      – All applicants and/or their spouse/de facto have not owned a residential property, jointly, separately or with some other person, in any State or Territory of Australia before July 2000.

      – All applicants and/or their spouse/de facto 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.

      – Each applicant has entered into a contract for the purchase of a home or signed a contract to build a home on or after 1 July 2000. In the case of an owner-builder, laying of the foundations commenced on or after 1 July 2000.

      – The total value of the property does not exceed the cap amount for eligible transactions which commenced on or after 1 January 2010. The cap amount is reviewed annually and the cap applicable to your application is determined by the commencement date of the eligible transaction. This is the date of the contract to purchase or build a home or, for an owner builder, the date the laying of foundations commenced.

      – This is the first time an applicant and/or their spouse/de facto will receive a grant under the First Home Owner Grant Act 2000 in any State or Territory (unless subsequently repaid).

      – At least one applicant will occupy the home as their principal place of residence for a continuous period of 6 months, commencing within 12 months of settlement or construction of the home. Where an applicant was a member of the permanent forces of the Australian Defence Force and all applicants were enrolled on the NSW electoral roll, as at the commencement date of the eligible transaction, dated on or after 21 October 2009, then all applicants are exempt from the residence requirement

      Let us know if you have further questions.

      Cheers,
      Jonathan

  4. Default Gravatar
    WayneSeptember 14, 2017

    Hi we purchased an investment property unit in 1998, purely for investment purposes we never lived in it and sold it around 2000, we are about to purchase a house in NSW after living in New Zealand for last six years, are we in titled to any concessions on stamp duty

    • Staff
      MaySeptember 14, 2017Staff

      Hi Wayne,

      Thank you for your inquiry.

      Just to confirm, would this be your first time to purchase a residential property? If so, in NSW, you may be eligible for a stamp duty exemption or concession if you qualify for the First Home Buyers Assistance Scheme under the FHOG. Moreover, you can be eligible for the FHOG in NSW if:

      1. You’ve only had a relevant interest in any residential property in Australia on or after 1 July 2000
      2. You never resided in that property for at least six continuous months and
      3. You’ve never claimed the grant

      For your reference, you can find a simplified guide to stamp duty in NSW on this page.

      Hope this helps.

      Cheers,
      May

    • Default Gravatar
      WayneSeptember 14, 2017

      Hi we have owned a property in NSW which was purchased after 2000 we resided in it for around ten years, but never claimed a first home owners grant when purchasing the property, again the investment property was purely investment purchased in 1998 all capital gains and taxes were paid

    • Staff
      MaySeptember 15, 2017Staff

      Hi Wayne,

      Thanks for getting back.

      If you think you’ve met all the eligibility criteria I’ve mentioned in the previous reply, you may be able to get stamp duty exemption or concession. The First Home Owner Grant in NSW is managed by the Office of State Revenue (OSR) so it would be best to contact them directly to discuss your eligibility. You can also so check their official website to get more details on FHOG in NSW.

      Cheers,
      May

  5. Default Gravatar
    GregAugust 25, 2017

    Hi. I currently own a house in Victoria, which was purchased in my own name (I obtained the First home owner grant). My partner and I are currently looking to buy a PPR Victoria. As I have previously obtained the FHOG, will she be eligible to receive the First Home Buyers Concession discount (for 50% of the stamp duty)? Thank you.

    • Staff
      JhezelynAugust 25, 2017Staff

      Hi Greg,

      Thanks for your comment.

      As per checking, you’re not eligible for the FHOG if you or your spouse/partner have already:

      - Received the FHOG in Australia,
      - Owned a home in Australia, either jointly or separately, prior to 1 July 2000,
      - Lived in a home in Australia in which either of you owned or part-owned on or after 1 July 2000, for a continuous period of at least six months. These criteria apply even if your spouse/partner is not an applicant with you for the FHOG.

      Therefore, your wife is not eligible for FHOG unfortunately.

      Do let us know if you have further questions.

      Regards,
      Jhezelyn

  6. Default Gravatar
    reeceAugust 24, 2017

    in QLD can i buy an investment property in a trust and then later apply for first home owners grant for my own home?

    • Staff
      ArnoldAugust 25, 2017Staff

      Hi Reece,

      Thanks for your inquiry.

      The Queensland Government’s Great Start Grant offers $15,000 of financial support to residents buying or building a new home. However, in order to qualify for the grant, you or your spouse cannot have previously owned property anywhere in Australia.

      So I’m afraid if you’ve previously purchased an investment property, you may not qualify for the Great Start Grant in Queensland.

      Hope this information helped.

      Cheers,
      Arnold

  7. Default Gravatar
    LynneAugust 18, 2017

    I legally separated from my husband OCT 2016, I have never had property in my name but he has, am I eligible for the first home owners grant?

    • Default Gravatar
      JonathanAugust 18, 2017

      Hello Lynne,

      Thank you for your inquiry.

      If you are divorced or separated, you are not required to consider the ownership of your previous spouse/domestic partner. You will be eligible for FHOG provided that you meet all eligibility criteria. It may be necessary for you to provide a copy of your divorce certificate or statutory declaration to confirm the separation.

      Hope this helps.

      Cheers,
      Jonathan

  8. Default Gravatar
    MikaelaAugust 7, 2017

    Just wondering if I’d be eligible for FHOG if I purchased a brand new home in NSW that is already built but hasn’t been lived in? Thanks

    • Default Gravatar
      JonathanAugust 8, 2017

      Hello Mikaela,

      Thank you for your inquiry.

      A new home is defined as a home that has not been previously occupied or sold as a place of residence and includes a home that has been substantially renovated and a home built to replace demolished premises. Your eligibility will be based on the date of the contract to purchase or build a home. o qualify for the First Home Owner Grant, you must meet the following eligibility criteria:

      – Each applicant is a natural person and not a company or trust.
      – At least one applicant is a permanent resident or Australian citizen.
      – Each applicant must be at least 18 years of age.
      – All applicants and/or their spouse/de facto have not owned a residential property, jointly, separately or with some other person, in any State or
      Territory of Australia before July 2000.
      – All applicants and/or their spouse/de facto 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.
      – Each applicant has entered into a contract for the purchase of a home or signed a contract to build a home on or after 1 July 2000. In the case of
      an owner-builder, laying of the foundations commenced on or after 1 July 2000.
      – The total value of the property does not exceed the cap amount for eligible transactions which commenced on or after 1 January 2010. The cap amount
      is reviewed annually and the cap applicable to your application is determined by the commencement date of the eligible transaction. This is the
      date of the contract to purchase or build a home or, for an owner builder, the date the laying of foundations commenced.
      – This is the first time an applicant and/or their spouse/de facto will receive a grant under the First Home Owner Grant Act 2000 in any State or
      Territory (unless subsequently repaid).
      – At least one applicant will occupy the home as their principal place of residence for a continuous period of 6 months, commencing within 12 months
      of settlement or construction of the home. Where an applicant was a member of the permanent forces of the Australian Defence Force and all
      applicants were enrolled on the NSW electoral roll, as at the commencement date of the eligible transaction, dated on or after 21 October 2009,
      then all applicants are exempt from the residence requirement.

      Hope this helps.

      Cheers,
      Jonathan

  9. Default Gravatar
    KarleneAugust 3, 2017

    I have an investment property, which I have never lived in. Am I eligible for the FHOG to purchase a property to live in?

    • Staff
      ArnoldAugust 3, 2017Staff

      Hi Karlene,

      Thanks for your inquiry.

      Yes, you may still be able to apply for the FHOG depending on each state. Each state has their own eligibility criteria and the guide above shows them. Please scroll up to the part where the states are shown and please click each for the criteria.

      Hope this information helped.

      Cheers,
      Arnold

  10. Default Gravatar
    SergeyAugust 3, 2017

    Hi, we are on student visa with my wife (not permanent residents).
    We are currently purchasing apartment (off the plan, joint ownership) to live in.
    In 1-2 years we will apply for permanent residence and want to buy a house.
    Will we be considered first time home owners?

    • Staff
      ArnoldAugust 5, 2017Staff

      Hi Sergey,

      Thanks for your inquiry.

      Eligibility requirements for FHOG are:

      1. You must be a first home buyer as a person, not as a company or trust.
      2. At least one applicant must be a permanent resident or Australian citizen.
      3. Each applicant must be at least 18 years old.
      4. You or your spouse, partner or co-purchaser must not have previously owned an interest in land in Australia which had a residence on it, before 1 July 2000.
      5. You or your spouse or partner cannot have lived in a residential property which you owned from 1 July 2000.
      6. You or your spouse, partner or co-purchaser may not have claimed the grant previously.
      7. You must occupy your first home as your principal place of residence within 12 months of the construction or purchase of your home and the minimum period of occupancy is six continuous months.

      Please take the time to read our Guide to FHOG here.

      Hope this information helped.

      Cheers,
      Arnold

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