Proof of FHOG - 6 month residency

Hi Folks

For Victoria you are required to reside in the property for at least 6 months
after construction. I dont understand though how this clause works though as the FHOG is paid during construction(i think).

Do the government/state what you to send them bills etc.. after 6 months to proof residency?

It works via your personal ethics and honesty.

If that fails it works by interdepartmental cross-checking at the time of sale.

But what an odd question. Why ever would this concern you ?

And if for some reason you were tempted to try claiming it and not residing in the home for the 6mths - they do complete random checks. I know of one person who was caught and had to repay the grant as well as pay the stamp duty owing on the property in full.

thanks - heres goes my explanation to my odd question - stay with me now..

I should get my citizenship in 09/10. My house should be built mid-2010. I have a very large mortgage. It will take about 20 years to pay on my current Oz salary. But my plan is just to return home for a 4/5 years and pay the majority of it off if not all by this time. Hence I want to get back asap once house is built and i have got my citizenship.

I can reside for 6 months, but will have very heavy outgoings in this time which will be uncomfortable to say the least. The FHOG is a fair amount to loss too. But I risk this by going back before 6 months get earning. So i'm wondering whether I should risk this.

Hope this makes sense

That's a tough one. I suppose it depends on the difference between staying 6 months and getting the grant, versus what you could make if you went back beforehand.... Perhaps there's some other exceedingly useful thing you could do here for a few months ?

Can you actually get the grant if you are not a citizen at the time of signing the contract?

I am pretty sure in SA you have to live in the house for 12 months - my son bought an established house and that was his information.

They will do random audits, there was an article in the paper earlier in the year about how many people had been caught out rorting the system - mainly young people who bought a house whil still liveing at home with parents and then rented it out.
They had to repay money in full and were also fined, I think.

Ari, you can get the grant as long as you are a permanant resident - not neccesarily a citizen. The same as Centrelink benifits etc.

I am surprised by the amount of misinformation, to say the least.

To qualify for the First home Owners Grant, you don't have to an Australian citizen. Only one of the applicants needs to be a permanent resident.

At least one applicant must 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.

Yes they do check, without your knowledge, via public utilities, driver's licence and car registration address details and Rental Bond Board (so don't get ideas about renting it out during the minimum 6 months you are required to live in it).

There is also a declaration form that they send you in the mail for you to fill in and send back. I know people who never sent the declaration back but they were never contacted either.

I hope this answers your questions.
http://www.homeloanoffice.com.au/needhelp/fhog.htm