Hello all, I am looking for a little more insight in to my query as I've had very varied responses. Firstly, it relates to property in Queensland.
I purchased a property on my own in 2004 prior to marrying my husband and lived in it until mid 2008, at which time the pair of us moved interstate as he took on a new position.
The property has remained in my name as we have not gone to the trouble of changing it, we married in 2008 also.
Now we are looking at purchasing another investment property and trying to service this loan with equity in my original property. We need to change our current property in to both our names for the purpose of the loan, (I am a stay at home mum at the moment and thus have no borrowing power according to the bank!)
My question, According to Queensland OSR, we meet the requirements to be exempt from Transfer Duty in our situation, (giving a portion of my property to my spouse as a gift) provided it is our Principal Place of Residence.
So is it our Principal Place of Residence? We lived in it for nearly 4 years and have rented it our since then. We are living in a house provided by my husband's employer and own no other property.
If you are familiar with this situation, do you know of any other costs that would be incurred? We don't HAVE to transfer the title over, although I realise there would be tax benefits at the present also. We are able to put more of our own money in to the loan and get away without the change but I'm just trying to work out the most efficient method.
Your thoughts or references would be well appreciated.
Hi
I have looked at the legislation previously and recall, maybe…., that it says something like will be the principle residence of the parties…
So you have to convince the OSR that you are only temporarily absent and will be moving back to the property in the near future.
There is no reason to transfer the home to access the equity for the next property. You can leave it in your name and do it. Changing it now will mean reborrowing (if there is a loan on it) and this could mean loan exit fees/app fees, valuations and other charges. You would also need a conveyancer/lawyer to do the conveyance – maybe $1000.
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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