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FHSS and partial investment property

I'm new

Views 760

Replies 3

Hello
I'm thinking of using FHSS to fund deposit of my first home.

I have two properties in mind, one of which is a two units in a single block of land. Back one is perfect for occupying and the front one is perfect for renting.

Does partially renting a property make me ineligible to use FHSS?
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Community Manager

Replies 0

Hi @NCK 

 

Thanks for your patience while we checked this for you.

 

Subject to other eligibility requirements, you can use the FHSS scheme if you are a first home buyer and both of the following apply:

  • you either live in the premises you are buying, or intend to as soon as practicable and
  • you intend to live in the premises for at least six months of the first 12 months you own it, after it is practicable to occupy the premises.

In the scenario you have outlined, an intention to occupy the premises is the key to you being eligible for the FHSS scheme.
If you were to purchase a property with two units on a single block of land, on the same title (with one unit you lived in and the other rented out by you), provided you genuinely intend to occupy one of the units as soon as practicable, and for at least 6 of the first 12 months after you are able to occupy it, you would be eligible to use the FHSS scheme.

3 REPLIES 3

Former Community Support

Replies 0

Hi @NCK

 

Thank you for your question in our ATO community forum. We are looking to get some further advice on your situation from our technical area, and we will get back to you.

Community Manager

Replies 0

Hi @NCK,

 

Just letting you know that we haven't forgotten about this, we are following this up with our technical area to get your answer.

 

Thanks, Nate

Most helpful response

Community Manager

Replies 0

Hi @NCK 

 

Thanks for your patience while we checked this for you.

 

Subject to other eligibility requirements, you can use the FHSS scheme if you are a first home buyer and both of the following apply:

  • you either live in the premises you are buying, or intend to as soon as practicable and
  • you intend to live in the premises for at least six months of the first 12 months you own it, after it is practicable to occupy the premises.

In the scenario you have outlined, an intention to occupy the premises is the key to you being eligible for the FHSS scheme.
If you were to purchase a property with two units on a single block of land, on the same title (with one unit you lived in and the other rented out by you), provided you genuinely intend to occupy one of the units as soon as practicable, and for at least 6 of the first 12 months after you are able to occupy it, you would be eligible to use the FHSS scheme.