Forum Replies Created
Danny not a tax lawyer but…You could always add your name to the title ? some states allow husbands and wives to do this under system where the Stamp duty is minimal. And if you do it as something other than 50/50 then you could theoretically claim more costs to you – but this is likely to be seen as tax avoidance ( part IVA).
Best option – transfer the property entirely over to your name ( borrow the money to make it completely geared) ie 100% – then you can refinance against more current value, and use any equity to buy another one!!
just do it for the original purchase price she paid that kills a bit of CGT -unless she had prior occupancy which may qualify her for home owners exemption.
you can get away with this as far as S/D is concerned as you don’t have to make money out of loved ones so a transfer at original purchase price is not unreasonable.(unless she has claimed deductions along the way.. as once again the ATO might get grouchy if she then tried to claim a capital loss..
just my thoughts but get advice!
Matt
you could always get an offer and acceptance/transfer for a sale three years into the future for full transfer to your name when the loan expires – you will be up for the costs then anyway.?
Make it for a fixed amount of her half (or 65% if you had a lawyer like me) plus the notional rental value of the half to allow for the time value of money. …just a thoughthaving said that sometimes is just easier to soak the costs and head overseas for a few years to build up tax free income…worked for meBeware – big corrections coming !! Central London is always going to be good but wait until the BOE reverses interest rates down a bit more..
Make sure that you have a look at the benefits of tax credits in Australian property for when you return to Australia – go to SMATS.net I think or google it – you will be glad you did and you may never pay income tax again depending on your circumstances!!Matt – current middle east perth expat!positive gearing – plenty of them here in DXB… try these figures for ROI
purchase price – 400 000 , may 04costs per annum 30 000,rent total over four years (net of fees etc) 240 000current value – 1,100,000no other outgoings…you tell me what you think of that positive gearingoh – borrowed funds at around 7.5% at 80% LVR. 20-30 % deposit.Good investing!MMaybe you lads should have a look at the middle east for property deals (UAE). Currently live here and with the exchange rate you can get in relatively easily, loans are more or less easy to get, rental returns are magnificent (better than 20% yield and depending on your tax arrangements depends on the overall result) For example a 120 000 dollar apartment three to four years ago now worth about 400 000 and rents (with rent paid one year IN ADVANCE) of around 35 000 with no other land tax, rates etc other than body corporate fees around 3 dollars per sq foot . Money is easy to get for everyone and rates are around 6.5%. Alternatively you can invest ungeared thru syndicates (Aussies cranked it up ) and that has returned 40% since august last year and is winding up and moving into Abu Dhabi from Dubai. If you have got that return in OZ in the last year well done.
Oh – I do have lots of Aussie property too but cant see things slowing in this part of the world for some years yet – they have too much money to spend… and so do the Russians that come here!I have a brother with US property and think he has done some money on the deal now and with the FOREX risks just too hard..and likely to get worse before better – maybe manhattan might be an exception… stay clear I reckon!just my thoughts but if you have some spare money and are looking for great returns email me – an dno – no kickbacks for me!!
