- Hi All,I need some advice.I own one IP and due to bad advice from my old fincial planner he had set up my first IP under a company name " We learn to live"With more experience under my belt I feel its time to look at putting the property under my own name:I am looking for a second IP shortly as well.If I want to transfer the IP to my name will I have to see a property lawyer to do this?In my opinion I think I will have to pay the following?– Transfer fee on the property– Stamp duty on the property ( Will I have to pay a full fee or part fee "etc")– Lawyer fees to change the property to my namewill there be any other fees?since the property has a loan attached to it will there be some sort of fee to transfer the loan to my name? I am with ING if that will help.
Jpcashflow | JP Financial Group
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Hi – I helped my sister out by purchasing a house under my name for her to live in (although she had the deposit and all fees covered, she had a default and the banks would not lend) I also went with ING, currently we are in the process of transferring the house to her name and she will be liable for the standard costs such as legals, stamp duty etc etc. There is also I believe a fee from ING to change the loan details. On the flip side however as she is a first home buyer she qualifies for the FHOG and stamp duty exemptions.
Cat
Just be careful about transferring the property from your name to her name especially if you do it at less than market value.
The OSR audit property sales to ensure they are not to related parties and if they are at a lower than market price she will not qualify for the FHOG.
Johann – Which State are you in. If you are buying an IP as a long term asset i cant believe any Financial Planner would recommend you buy it in a Company name. In saying that maybe they would……
Richard Taylor | Australia's leading private lender
Qlds007 wrote:Cat
Just be careful about transferring the property from your name to her name especially if you do it at less than market value.
The OSR audit property sales to ensure they are not to related parties and if they are at a lower than market price she will not qualify for the FHOG.
Johann – Which State are you in. If you are buying an IP as a long term asset i cant believe any Financial Planner would recommend you buy it in a Company name. In saying that maybe they would……
Hi Guys thanks for your Input: QLD007 i am based in Melbourne, it really has not effected me that much becasue i cant cliam that much any way. My rent covers more then my home loan repayments but i am just thinking when its the right time to sell i do not want to pay so much capital gains under a company!!
Jpcashflow | JP Financial Group
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Email Me | Phone MeYour first port of call in finance :)
Johann – If the property is owned by a Company you wont get concessional treatment with regards to the Capital Gain Tax.
In some States this will also go for the Land Tax and Stamp Duty.
You maybe able to access the equity and then use this as your deposit and go again.
Richard Taylor | Australia's leading private lender
Hi All,
I'm looking at transferring my parents house into my name. Any ideas on how I can pay the lowest possible stamp duty? I am in VIC and know that you are required to pay the higher of the sale price or market price.
However, any ideas on how the SRO measures "market price" will it be a look at similiar properties and recent sales evidence only? Can I get an independant valuation and base it on that? I don't want to pay excessive stamp duty but I also don't want to be caught out paying too little on the transfer.
Any ideas or comments from people with past experience would be greatly appreciated.
phungu wrote:Hi All,I'm looking at transferring my parents house into my name. Any ideas on how I can pay the lowest possible stamp duty? I am in VIC and know that you are required to pay the higher of the sale price or market price.
However, any ideas on how the SRO measures "market price" will it be a look at similiar properties and recent sales evidence only? Can I get an independant valuation and base it on that? I don't want to pay excessive stamp duty but I also don't want to be caught out paying too little on the transfer.
Any ideas or comments from people with past experience would be greatly appreciated.
phung, just get a few valuations done and ask them to go as low as possible, then chose the lowest to base your figures on.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Qlds007 wrote:Johann – If the property is owned by a Company you wont get concessional treatment with regards to the Capital Gain Tax.In some States this will also go for the Land Tax and Stamp Duty.
You maybe able to access the equity and then use this as your deposit and go again.
Your right about thats i have alot of equity the property is worth 260+ and i only own 150k on it
we win both ways how does equity work?Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Assume that the property is worth $260K you could borrow upto 80% of this valuation without mortgage insurance or upto 95% with mortgage insurance.
$260K x 80% – existing debt of $150K = $58,000 or
$260K x 95% – existing debt of $150K = $97,000
With the raised funds you can use this as deposit and acquisition costs on your new property or properties.
Richard Taylor | Australia's leading private lender
phungu,
I had to transfer a title some years ago from 2 names into my name. The valuation as recall was done via an independant valuer via the bank I held the mortgage with ( i think).
Anyway the point is this, the valuation in my view was about 20-25% under the current market value, this valuation was in an rapid upward market of 2003,( perhaps it reflected is "true" value back then)
However ….. i think that in the current economic climate , you should get a favourable valuation anyway,, valuers are usually fairly conservative and this may be more so now I imagine………….
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