hi there folks
My bro and his wife have schizophrenia, bipolar, depression , hypochondrian and a list of other complaints. They are on a disability pension and I look out for them. Now they own their unit (valued about 230k) but they are sick of paying the exhorbitant body corporate fees. Now I have a house that they love.(value 350k) It's a great rental, 3 bedder brick and tile with a separate one bedroom granny flat out back. I'm getting a total of $470/wk. My bro and his wife want to live in this house or granny flat and I really want my money out to put in a higher growth area.Is there any way of avoiding them paying stamp duty. Can we set up a trust and mortgage the house thro the trust? I would rather keep my name in the partnership as a safeguard. They are both on disability pensions and I pay their bills as they are unable to organise their finances. I certainly do not want to cheat them out of anything but I would like my 20% deposit back to put elsewhere.
thanks for your time
millyI'm sure someone here will be able to answer you question re: the trusts etc (sry, not my forte)…
Just another option…
Have you considered:
1. Your brother & wife rent their unit out to someone else (that way all their UNIT expenses are tax deductible
2. You rent your house / granny flat to them…
3. You pull equity out of your house and reinvest in your growth area. (that way you have two properties and three incomes)Cheers.
Yes Contrarian I have given thought to this. Unfortunetly Centrelink doesnt look too kindly at people renting when they have a perfectly good place to live.
Hi
I don't think there is a way to transfer the title and ownership without paying stamp duty. You may be able to work out some sort of lease option method whereby beneficial ownership is slowly transfered from yourself to the relatives slowly over time. The stamp duty would only be payable on the transfer of title, but the other party could have an equitable interest and lodge a caveat to protect this interest. This could be combined with them taking a second mortgage to further protect themselves – increasing this over the years as the value increases.
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
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