I’m married and looking at buying an investment property. Is it possible to get a loan in joint names and then buy the property in the name of the spouse with the lowest income? Also will all the interest from the loan only be able to be deducted against the property owner (ie. the spouse with the lowest income in this case?)
“Work like you don’t need the money”
Dance like your not being watched”
“Love like you have never been hurt”Only the person who’s name is on title can deduct the interest. You would put the title in the name of the person with the highest income if tax deductions are driving your decision.
TMA
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First Home Buyer WebsitePinnie
TMA makes a good point in relation to deductibility of interest however, if you are planning to hold the property long term, or if your (or your partner’s) circumstances change this could come back to bite you.
For example, if the highest income earner retires or stops work for another reason, the losses (and deductibility) are in the name of someone with no income to claim against. And, you can’t transfer the property to someone else unless you want to bite the bullet on a second lot of stamp duty and, possibly, CGT.
I’d get some professional advice about structuring before you do anything and make sure your advisor takes into consideration ALL taxes that might affect you i.e. income tax, land tax, CGT and stamp duty.
Certain Trusts can give you benefits that cover all areas but seek the right advice before you sign anything.
Regards
Megan
It is difficult to plan for unforeseen events. Retirement planning is not so difficult but ‘another reason’ makes it difficult.
TMA
http://www.email4money.info
Investor Links
First Home Buyer WebsiteTMA always has valid points. There is always something that pops up. Sometimes life gets in the way, good or bad.
CATA
Asset Protection Specialist
[email protected]Hi Pinnie,
Your question was:
Is it possible to get a loan in joint names and then buy the property in the name of the spouse with the lowest income?
I have helped my son out getting loans with Westpac. The loans were in both names and the title was in my sons name. He declares all income and all deductions.
Talk to your lender and your accountant.
hrm
Pinnie
In answer – Yes you can obtain a loan in joint names yet have the property in the name of the either party dependant on what is driving you behind this investment.
Feel free to contact us if you require any further information.
Cheers Richard
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http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
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