Can anyone help with this problem? My mother-in-law some years ago was renting council property that came up for sale at a discounted price, I took out a second mortgage on my house to purchase the discounted property in her name (to get the discount.) Now, how can I get the property in my name without having to pay the stamp duty. The property is in her will and should come to me without any problems when she dies, but this might take 20 years and I would like to develop this triplex block before I retire.
1, Can my name be added to the title so I can develop the property
now?2, If the will takes effect – will there be any costs?
3, Can I develop without it being in my name?
Any help would be appreciated.
Regards
Steve
Originally posted by bindin46:Can anyone help with this problem? My mother-in-law some years ago was renting council property that came up for sale at a discounted price, I took out a second mortgage on my house to purchase the discounted property in her name (to get the discount.) Now, how can I get the property in my name without having to pay the stamp duty Short Term Answer, I dont think you can?. The property is in her will and should come to me without any problems when she dies, but this might take 20 years and I would like to develop this triplex block before I retire.
1, Can my name be added to the title so I can develop the property
now?Yes, speak to DOLI re Costs…Once developed though then what? Think about taxes etc and look at the best structure for your goals……2, If the will takes effect – will there be any costs?
3, Can I develop without it being in my name?
Any help would be appreciated.
Regards
Steve
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHi Steve,
Stamp duty will be payable on any transference of title – however this may not be as terrible as it sounds.
I am not a developer so take what I say with a grain of salt and I defer to the experts in this area.
Get MIL to subdivide block and transfer/sell the bits to be developed at the rear to you and leave the bit she is living in in her name until the will kicks in. Obviously this approach is dependent upon the house being suitably located for subdivision around it.
Without knowing your financials banks will have a great reluctance to lend you money for a development on land you do not own. As such it may well be worth your while to get you name on the titles anyway and factor in stamp duty costs as part of the overall project.
Can MIL be partners in the project (1%/99%) split so that funding may become easier?
Of course at this stage you are looking at this project from your perspective but should it get up and running then there could well be tax implications for MIL. Certainly discussions with an expert in their respective fields is mandatory as part of your due diligence.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958Steve you are about to embark on a project with building/site costs alone around the $500k. I wouldn’t be swinging the whole deal around on the basis of the stamp duty as it is almost immaterial.
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
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