Block as a present?

Hi Guys,

Hope all is well.

Two questions…

My parents are refinancing to build a new home on a block in Denmark.

The block in Denmark is already paid off.

They will be renting the house out that they plan to build, plus they will be negative gearing against this loan.

They also own a block in Yanchep – which has a $100k or so mortgage on it.

Question 1:

Assuming they can service the loan, would they be able to refinance the $100k loan for the block in Yanchep, in to the new loan they plan to get for the house they want to build down in Denmark?

The result would then be that they would then own the block in Yanchep out right – with the titles being theirs – even though the money loan for this block has been bundled into the house down in Denmark. Would this work? Would they be able to negative gear the $100k or so they add to the house loan in Denmark?

Now, Question 2

If they then gave that block to myself and my girlfriend as an engagement present – would we only have to pay for the stamp duty when transferring the titles from their names, to mine and my girlfriends?

Thanks in advance!

Rgds

Wayne

Wayne Leech

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