All Topics / Help Needed! / How can i Benefit

Viewing 4 posts - 1 through 4 (of 4 total)
  • Profile photo of T-manT-man
    Member
    @t-man
    Join Date: 2006
    Post Count: 6
    May 7, 2006 - 3:12 am

    Hello all,

    I have been reading this forum with great interest the last few weeks and now have a question.

    The short version is this;
    I am 27 yo and have never purchased property before until just short of xmas. My father in law was not in a position to purchase land in NSW and asked if i would get the finance for him. I didnt think i would be able and to my amazment i borrowed $62,000 for a block of land. OK so its not a huge amount but enough.
    Anywho i didnt give it much thought until i started researching and i found this site.
    So i am wanting to know how can i make this work for me?
    My father in law makes the payments monthly into my account.
    Should i write a receipt and make it look as thou i am leasing this land to him?
    Does anyone have any suggestions as to what i could do?

    All help or direction to other information would be much appreciated.

    Thanks..>Adam

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    May 7, 2006 - 6:28 am

    Hi

    So you purchased land in your name for your father in law?

    What is he doing with the land? You could possibly make out that you are leasing it to him, but if he is making full loan repayments, you would not be saving any tax – except maybe rates and water.

    Not sure what you are trying to do??

    Terryw
    Discover Home Loans
    Parramatta
    [email protected]
    Sign up to my mailing list.
    Just send me a blank email, with “subscribe” in subject line.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of T-manT-man
    Member
    @t-man
    Join Date: 2006
    Post Count: 6
    May 7, 2006 - 7:05 am

    Thanks for the reply Terryw. Yes i have purchased the land in my name for him. He is building a shed on it before the end of the year with the intention to moving there. From there a house will be built.

    Im not trying to do anything in particular but was wondering if anyone had some ideas as to what i could do with it…tax breaks etc…

    Thanks again..>Adam

    Profile photo of ZigZig
    Participant
    @zig
    Join Date: 2006
    Post Count: 17
    May 8, 2006 - 4:51 am

    Hi T-man

    I fairly inexperienced myself, so regard my advice accordingly.

    Having the land in your name will incur costs. Make sure you get these back from your father-in-law.

    I’d see an accountant, (who invests in property), and ask him about the renting implications under these circumstances.

    It sounds like a good idea to me, but when you sell the land to him you will also incur fees, and tax if profiting.
    Hopefully someone more experienced will comment on these issues.

Viewing 4 posts - 1 through 4 (of 4 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.