My sister has a unit with a current tenant. She is looking to purchase another PPOR, however she will have to sell the unit because she will have too much exposure to property.
As a solution, I am considering buying half of the unit and she retains the other half. Firstly, how do we go about doing this and secondly, is the stamp duty only payable on the half that i purchase??
You can use a solicitor/conveyancer to do the necessary title changes. If you have the time and the inclination you can do the necessary transfers yourself at the titles office.
I transferred a title from my Grandma to my mum a few years back and the whole process took very little time and effort.
If you need to get a mortgage then that will add a further layer of compexity into it.
I believe you will only need to pay stamp duty on the purchase price of your half. But check it out.
Important to work out the finance too. If you have a mortgage in both names then you will be jointly liable for the whole debt – this may not assist your sister if she is having trouble getting PPOR finance because of her lending situation.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Agree with what has been said, also not sure about security. If you need the property as security for your loan a bank, should want her on the loan docs.(they can’t sell half a house ), This could get you in arguments with the taxman as to who the interest deductions belong to,
NATS
If your sister has too much property exposure-in terms of loans, then selling half won’t really solve anything because she would still would be liable for the whole debt. ie if you were to stop paying, she would be liable.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
NATS, why don’t you look at buying the house that your sister wants, and renting it to her? She gets the house she wants, and you get a (hopefully) reliable tenant, and an IP for yourself.
Cheers
Mel
NATS, why don’t you look at buying the house that your sister wants, and renting it to her? She gets the house she wants, and you get a (hopefully) reliable tenant, and an IP for yourself.Cheers
MelThat sounds like a win/win to me Mel.
I have heard of people buying a house their friend wants while their friend buys a property that they want. This way they rent to each other and have all the tax benefits that go with it.
Regards Bear
All the benefits except for the CGT exemption and the FHOG that is.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Yes, but neither NATS or his/her sister would qualify anyway for the FHOG if they continue with the strategy outlined.
To avoid CGT is really, really easy – don’t sell
]In ACT, if you buy an investment, you can claim the stamp duty on your tax. If you buy PPOR you cannot, so you can almost get that $7000 back anyway, especially considering current stamp duty rates.
Cheers
Melwhat does PPOR and FHOG
thanks simon
Hi 2muchmoney,
PPOR Principle Place Of Residency
FHOG First Home Owners GrantCheers,
sisWho says she has to sell because of too much exposure to property?
Her lender?
Maybe changing lenders will be the most efficient option here.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
thanks still in school
]
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