5/9 Discovering HPSEA. Empowering Your Property Journey
Welcome back to our ongoing journey through “Understanding Your ADF Housing Entitlements.” Today, we’re excited to illuminate a unique card in your entitlement deck – the Home Purchase or Sales Expenses Allowance (HPSEA). This powerful scheme is designed to ensure that your commitment to serving your country does not come at the cost of homeownership privileges.
Discovering HPSEA: Empowering Your Property Journey
The Home Purchase or Sales Expenses Allowance (HPSEA) recognises the sacrifices of being posted in various locations every two years and offers compensation by reimbursing you for the expenses associated with selling and purchasing a home in your new posting locality.
Whether you’re serving full time or have previously been part of the ADF, you could be eligible for HPSEA. Reservists can access this allowance by being on continuous full-time service for a year or more. HPSEA operates within a sell-purchase-sell cycle, providing you the means to reclaim costs when you’re transferred.
Navigating HPSEA Qualifications and Timelines
To qualify, you must buy or sell a home within specific timeframes. If you’ve made an eligible purchase and are posted to another location, you have two years to sell your old home from the date you receive official written notice of the posting. Additionally, you have four years after you start duty at the new location to purchase a home. The reimbursement claim can be filed after the purchase is completed.
Reclaiming Your Costs
Consider this scenario: You live in your current posting’s home, and then the ADF relocates you. By selling your old home and purchasing a new one in your new location, you can claim reasonable expenses related to both transactions. This includes agent’s fees, conveyancing fees, mortgage fees, and select government fees. It’s important to note that there are caps on certain reimbursement amounts.
A Hidden Treasure: Unlocking HPSEA Benefits
If you’ve previously bought or sold property while serving in the ADF, you may have the opportunity to claim HPSEA benefits. Many have heard of this scheme during yearly briefings but often overlook it. Right now, recognising these entitlements could mean significant financial gains for yourself or someone you know.
A real-life example: I learned about HPSEA and took action. I claimed one HPAS and two HPSEAs, leading to a remarkable $45,000 reimbursement. Discovering and using these entitlements made a meaningful impact on my financial journey.
Stay tuned for our next post, where we’ll delve into the Defense Home Ownership Assistance Scheme (DHOAS), providing you insights into how to make this scheme work for you.
Stay curious and empowered on your financial journey!
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