Hi all experts,
I've following this forum for the past six month, and I must admitted this forum is ROCK!!!
And finally i have a problem of my own and would appreciated for any advices.
My issues started when I sister want to buy her second home.
From beginning, my dad bought a house for us(both of our name on the title deed) in 1996 and now she want to buy another house and she plan to leave there and may be sell it later.
Her situation is she and her spouse owned a house but the deed only under her spouse name and now they want to buy another house and because he's owned one house he don't want to put his name on the second house, they plan to buy a good house so they can leave in it and may be rented out the other one(not sure). But because he don't want to go through the whole hassle of CGT( or avoid CGT by swapping every 6 years) with the new one so he want my sister to be on the deed for the new house.
Now my sister want me to remove her name our of the title deed and i know it will consist of Stamp Duty (NSW) which I'm not happy to pay at the moment, because I got other commitment(saving money to buy a house for myself).
Is there any strategies that would help all of us in this circumstances? your help would be appreciated
Cheers,
David
david_n_ property
Congradulations you have confused me with your grammar.
Sorry for the confusion, please read below, i believe i have made myself more clear this time round.
In 1996, my dad bought a house for my sister and I (both of our names are on the title deed).
My sister and her spouse (Tony) also have a house of their own, but the deed of their house is only under Tony's name.
The issue started when my sister wanted to buy her second home (a house purely under her name). They plan to live in the second home but may sell it in the future, and will rent out Tony's house.
The reason why they plan to have the second home purely under her name is because Tony is afraid that if his name is also on the deed, he will have to go through the hassle of the CGT.
Now, my sister wants me to remove her name out of the title deed (from the house our dad bought for us back in 1996). I'm not happy to do this as i will have to pay for the Stamp Duty (NSW), because I've got other commitment i.e saving money to buy a house of my own.
Are there any strategies that would help all of us in this circumstance? Your help would be appreciated.
Cheers,
David
David
i am unsure why your sister needs to have her name removed from the Title.
It is not that she will benefit from the FHOG or stamp duty concession ?
The rent or assumed rent may even increase her borrowing capacity.
If she want to remove her name then she will be required to pay CGT and you tell her that she is to cover your SD.
In saying all of this i go back to my original question why does she need to do it ?
Richard Taylor | Australia's leading private lender
If your sister removes her name from the house that you partially own, then you will own it – why do you then need to buy another property when you will be increasing your ownership to 100% of this property? There is nothing stopping you selling this house and using those funds to purchase your next property (or properties). Alternatively, just sell this property and split the money to be used no-strings attached for your own investments.
Thank you all for the reply.
Qlds007:
The current house is not rented out and we both not even live in it, basically right now my uncle (from dad side) live in it. Does that incurred any CGT if we going to sell it?
I'm not 100% sure why, but the reason my sister want to remove her name from the title because she afraid her second house will be consider for CGT or some Tax purposes after she sell the second house. Are there any complication if she choose to buy another property and avoid CGT or any Tax related issues?
Scott No Mate:
I'm not thinking of selling this house, I felt that if we sell this house it's like we want the inheritance while our parents still here with us, and even I agree with her to remove her name from the deed, I don't have to money to pay for SD anyway.
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