Tenants in common and refinancing a loan

Viewing 9 posts - 1 through 9 (of 9 total)

AndrewDjapouras
Participant
@andrewdjapouras
Join Date: 2003
Post Count: 9
March 29, 2004 - 10:21 am
I currently own an investment property with my wife 50/50, however she has stopped working to have a family and for tax purposes we want to move it to 99% in my name.
I know I have to pay stamp duty on the property for the transaction, but the question I have is where or not I can refinance the investment loan and shift some of the debt on our home loan by actually paying my wife for her share of the investment property.
Warm regards
Andrew
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
March 29, 2004 - 10:48 am
I think this is a great concept.
I don’t know the answer. Please speak to an accountant and let us all know how it pans out!
Thanks mate,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
AndrewDjapouras
Participant
@andrewdjapouras
Join Date: 2003
Post Count: 9
March 29, 2004 - 10:59 am
I have already log a call with an accountant and I am waiting on a reply. Just thought some has already been there done that. I will share it once I have an answer.
Cheers
Andrew
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
March 30, 2004 - 2:36 am
Andrew, good strategy which should be OK as you are purchasing another 49% of the property, so can borrow the money to do this. You wife can then use the proceeds to pay off your PPOR or other.
Terryw
Discover Home Loans
North Sydney
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
March 30, 2004 - 2:37 am
One more thing to consider is, your wife will probably have to pay CGT on market value of her share sold.
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
AndrewDjapouras
Participant
@andrewdjapouras
Join Date: 2003
Post Count: 9
April 1, 2004 - 3:53 pm
Terry,
Thanks for the feedback, the accountant has also confirmed it. Pay stamp duty, pay CGT and then you can refinance.
Cheers
Andrew
AndrewDjapouras
Participant
@andrewdjapouras
Join Date: 2003
Post Count: 9
April 1, 2004 - 3:56 pm
Terry,
Thanks for the feedback, the accountant has also confirmed it. Pay stamp duty, pay CGT and then you can refinance.
Cheers
Andrew
Borgie
Participant
@borgie
Join Date: 2003
Post Count: 2
April 3, 2004 - 12:57 am
your wife can give you her 49% so you have 99% and she has 1% without paying stamp duty just solicitor and transfer fees about $500 total then you can claim 99% of deductions in your name.
Ask your accountant I’ve done something similar.
Regards Borgie
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
April 3, 2004 - 10:39 pm
Borgie,
I think this is different in different states.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.