Forum Replies Created
As I understand it, Joint Tennants = 50/50 split regardless of who pays the loan/expenses. So if you were to pay 2/3 costs you would only be entitled to claim 50% of borrowing expenses/interest and so on and 50% of the income.
A better arrangement for you may be ‘Tennants-in-common’ where you can specify who owns what. So you on and pay for 2/3 of the property and you nephew the other 1/3. This is also legally binding, in that if you were to die ([
]) your 2/3 share stays with your estate. With Joint Tennants, your share you automatically pass to your nephew.I believe a solicitor would be required to set up a Tennants-in-common arrangement. I’m not sure about the banks/loans….Terry or Stuart might be able to shed some light here.
Hope this helps.
Hi Steve.
The books for sale from this site….will they be listed on the ‘Resources’ section?
I haven’t been able to find it in a bookstore up here in Darwin yet.[
]Thanks
Ah [
]Hi,
There are many structures available for purchasing an IP, some of which you mentioned. Discretionary Trusts or Hybrid Discretionary Trusts have been discussed many times on this forum. I suggest you do a search for these topics and have a read.
BTW, I’m looking to set up a Trust for my IPs, just need to source a little more info. Most of the info I have found to date came from this site.
Also, the “Wealth Guardian” product gives plenty of info on setting up your structure. Have a look ing the ‘Resource’ section on the menu bar. (no I don’t get commission [
])Cheers.
I’m speechless!
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You must be joking!?!?!
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Hi,
If you purchase the property together as co-owners then there are two ways you can legally arrange the purchase.
Joint Tennants – legally you will both own 50% of the property regardless of who pays for what. In this case you both are able to claim for 50% of costs, even if your father pays for the reno.
Tennants-in-common – legally you can specify who owns what. eg you own 66% and your father 34%.
So, if you are going to put more money into the property (in the form of deposit and repayments), tennants-in-common may be the way to go. For the reno, you could estimate the cost and add it to the purchase price[?] then calculate who pays for what percentage of the total cost.
There are also some legal advantages to Tennants-in-common….
* Your share is your legal entitlement. So if for example you and your father had a falling out (or heaven forbid die [
]) your share is protected and remains with you or your estate. With joint tennants the share goes to the other person.* Lets you divide rental income (as well as expenses) according to the share holding.
Hope this helps.
Cheers
]) your 2/3 share stays with your estate. With Joint Tennants, your share you automatically pass to your nephew.
]
])
