ADF Housing Entitlements.

Your ticket to property prosperity! 🛡️💰

Get ready to embark on an exciting journey into the world of property investment with our upcoming series on leveraging your ADF housing entitlements! 🚀 As a member of the Australian Defence Force (ADF), you have access to a range of entitlements and schemes designed to support your housing needs and investment goals. From the First Home Owners Grant (FHOG) to the Defence Home Ownership Assistance Scheme (DHOAS) and more, these allowances and schemes offer valuable opportunities to build wealth through property.

In our upcoming series, we’ll delve deeper into each of these entitlements, exploring how they apply to property investing and uncovering strategies to maximise their benefits. Whether you’re a first-time homebuyer or a seasoned investor, understanding and leveraging these entitlements can make a significant difference in your property journey.

First Home Owners Grant: Your ticket to property investment freedom! 🎟️🏠
Today, in our series on leveraging ADF housing entitlements, we’ll explore the First Home Owners Grant (FHOG) and its potential to revolutionise the journey for aspiring property investors like yourself. The FHOG is a nationwide initiative funded by the federal government and administered by each state and territory, offering varying amounts and eligibility criteria. In Western Australia, New South Wales, Northern Territory, and Victoria, the grant stands at $10,000, while in South Australia, it’s $15,000, and in Queensland and Tasmania, an impressive $30,000 awaits qualified applicants. Be sure to check your state’s specific website for the most up-to-date information. Typically, the FHOG is designated for new homes, defined as dwellings that have not been previously occupied or sold as a residence, including substantially renovated properties in certain cases. However, there’s an interesting twist: you’re not limited to using the FHOG solely for your own home. You can strategically invest in property first, then circle back to claim your grant later—an opportunity you wouldn’t want to miss!

Now, let’s break down the eligibility requirements:

• Property value caps vary by state, ranging from $500,000 in the Northern Territory to $800,000 in New South Wales.
• You must not have owned any property before July 1, 2000, and must not have lived in your own property after this date.
• Moving into the property within 12 months and residing there for a minimum period, typically six months but 12 months in the ACT, are also stipulations.

So, how would I leverage the FHOG if I were in your shoes? I’d strategically wait until I’m posted to a prime investment location. With about a year left in my posting, I’d utilise the FHOG to purchase a property, allowing ample time for construction. As the posting winds down, I’d transition the property into an investment, leveraging its potential returns.

Maximise your investment potential with the Home Purchase Assistance Scheme! 💰🏡
In the next discussion on our series on leveraging ADF housing entitlements, I will give you insights on the Home Purchase Assistance Scheme (HPAS) and its potential to significantly boost your journey as an aspiring property investor.

HPAS is essentially like the FHOG but tailored specifically for ADF members, offering additional financial support beyond what you receive from the FHOG alone. It’s a unique opportunity that can make a real difference in your property investment endeavours. Let’s delve into the eligibility criteria for HPAS:

• It must be your first home purchase while serving in the ADF.
• You should not have had a previous entitlement.
• The purchased home must be located at your current or new posting locality.
• You’re expected to serve at the location of the purchased home for at least 12 months after the contract is signed
• If you’re a member with dependants (unaccompanied), you’re expected to maintain that status for the 12-month period.
• You must live in the home within a specified period.

It’s important to note that HPAS is accessible to full-time ADF members, and if both you and your spouse are serving members, only one person can utilise it at a time, with the other being eligible for it on the next property.

Now, let’s talk about the financial aspect. HPAS provides a payment of $16,949 before tax. While tax will be deducted at the time of payment, it’s still a significant boost to your property investment journey. For instance, if you’re in the 32.5% tax bracket, you could have approximately $11,440 at your disposal after tax. When you combine HPAS with the FHOG, you could potentially have anywhere from $21,500 to $41,000, depending on the state where you purchase your property. That’s a substantial sum that can truly accelerate your path to property ownership!

Stay tuned for our next discussion, where we’ll uncover more insights to help you maximise your ADF housing entitlements and propel your property investment endeavours forward.

~Daimien Patterson
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