First Home Owner Grant and Investment Property Strategy
In most Australian states and territories, purchasing an investment property as your first acquisition will not disqualify you from claiming the First Home Owner Grant (FHOG) later, provided you meet certain conditions. You must never have received the FHOG before and you must not have occupied the investment property for six continuous months or more (since 1 July 2000).
How FHOG Works
- The FHOG cannot be applied to an investment purchase—it applies only to a new home that becomes your principal place of residence (PPR).
- You have up to 12 months after settlement (completion) to move into the new home and must live there for the required period (typically 6–12 months, depending on your state or territory).
FHOG Eligibility by State & Territory (2025)
| Jurisdiction | Grant | Investment Property Exception | Residency Rules for New Home |
|---|---|---|---|
| New South Wales | $10,000 | Allowed if never lived in for 6+ months | Move in within 12 months; stay 12 months |
| Victoria | $10,000 | Same 6-month rule applies | Move in within 12 months; stay 12 months |
| Queensland | $30,000 | Allowed if never occupied | Move in within 1 year; stay 6 months |
| South Australia | $15,000 | Pre-Feb 2025 exception; stricter now | Move in within 12 months; stay 12 months |
| Western Australia | $10,000 | Same conditions as NSW | Move in within 12 months; stay 6 months |
| Tasmania | $30,000 | Exception applies on same basis | Move in within 12 months; stay 6 months |
| Australian Capital Territory | $10,000 | Allowed under same criteria | Move in within 1 year; ongoing residence |
| Northern Territory | $10,000 | Similar rules apply | Move in ASAP; stay 6 months |
Required Documentation
- Proof of Investment Intent: Rental agreements, ATO statements or utility bills showing you didn’t reside in the property.
- No Prior FHOG: Neither you nor a partner may have claimed the grant previously in Australia.
- Eligible New Home: The FHOG only covers new builds or substantial renovations, not established homes.
Final Thoughts
Buying an investment property first can be a savvy move if you plan correctly to preserve your FHOG eligibility. Rules vary slightly by state and territory—always confirm details with your local revenue office. When executed properly, this strategy lets you invest early while keeping your first home grant for a future residence.
For personalised advice, contact our team and discover how to optimise your property journey across Australia.
