This may of been covered elsewere but i couldn’t find posts to suits so i’ll say my sorrys now.
Ok, i already have a ppor under my name and my mother inlaw (mil) is looking at buying a place with me as a reno and onsell maybe over 12 months or sooner. (and yes i can hear the “warning warning” Wil Roberson)
My mil will be living there and sharing the repayments with me, i’ll be putting up the deposit. Which is the best way for us to structor the deal? The mil can be the ppor? do i get hit with cgt with my half of profits?
Any ideas of the best way to structor would be great.Hmmmmm , the mother in laws curse ……
Just when you need her she will be off on her broomstick to make up poisonous potions and spells for you . I would look elsewhere……..
If you think you will sell in the short term for a capital gain then the best way would be for her to buy it as a PPOR and then split the profit with you.
This is fraught with risk as you will own nothing. I wouldn’t hesitate with my in laws – they are good people. Only you can decide.
Simon Macks
Residential and Commercial Finance Broker
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
If you were to put it in the mil’s name, then she could claim it as her main residence and be CGT exempt. Will save you going on the loan too and will reduce your risk and preserve your borrowing cap. Maybe you need another written agreement on profit sharing, and at least a loan agreement if you are lending her the deposit.
Terryw
Discover Home Loans
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Send an email to get my newsletter.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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