Hi All,
As this is about my second post in almost 12 months, i would like to say i have been reading alot, not being ignorant but would really really appreciate some advice at the moment…
Ok, my husband and i have been wanting to get our first investment property for some time but circumstances have not made this possible…
Now, we are in a position to go ahead BUT we are separating by Christmas…
Now, here’s our idea and i can’t think of any pitfalls, maybe you can?
We buy the investment property anyway, i stay in our initial home with 50% share care of the kids and he lives in the new property with 50% share care of the kids…(also cancels out maintenance and the kids think it’s going to be fun – instead of messy)
Therefore, we both have a property, lives, companionship and i don’t know about him but i will certainly be gaining more properties in the future…
One lender asked me why we wanted two properties that were owner occupied (and got very embarrassed when i said due to separation – poor guy) he then said something about tax benefits of doing this but didn’t elaborate…
Bonus? i don’t know…
I would appreciate any help in this area, even book names regarding this venture or links in the right direction…
Looking forward to your valuable responses…
Regards,
Dee…Hi Dee,
Separating / divorce whilst still being financially connected aint such a good idea IMHO. When I divorced I split our net worth down the middle and gave it to my ex.
Believe me any financial deal you have together will be quickly overturned once a new partner comes on the scene.
If you can stay financially connected and good friends about it I would go back over the problems that caused you to want to separate and see if you can fix up the relationship!!!!!!
If you are divorced, you could have one main residence each CGT free. But i think it may be better to have one title in each name rather than joint ownership. You should be able to transfer existing ownership to either one of you without stamp duty. But also watch out as he may have claim on any of your future properties (and you on his) if you don’t legally go thru divorce before you buy them. Better to run everything by a solicitor.
Terryw
Discover Home Loans
North Sydney
[email protected]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
Thanks very much Terry and qwerty,
Just the kind of reminders i needed…
I will discuss this in more detail with both our mortgage broker and solicitor…
Regards,
Dee…I think you need to come to agreement on a settlement figure ($$) so there is no claim in the future by either party on either one’s assets.
And thats an official agreement that is court approved.
Once again, personal experience….Good Luck,
KP
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