My defacto currently has no property as i do.
We want to sell my PPOR and upgrade. (new property value to around $1M)
I want to know if you can legally buy the new PPOR in my partners name under a trust set up, then collect the FHOG and transfer the title to both our names after settement.
Is this possible? and if so what are the financial implications, pros and cons and what kind of trust would you recommend??
Not possible to get FHOG if the property is owned as trustee.
Even if you could the Stamp duty payable on the transfer from her name to both names would eat up a large portion of it.
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 terry..
without a trust set up are we allowed to buy in my partners name even if we are defacto and collect FHOG?
PS. I thought one of the pros of trusts (such as Hybrid trusts) was that there is no stamp on title transfer?
This is the 2nd time today i have been asked the same question.
The FHOG application asks if you have a Spouse or Defacto who has claimed the FHOG and if you answer YES then you will disqualify yourself. In saying this i have spoken at length to the FHOG dept and there attitude is depends on the Defacto relationship.
If you live apart or have just moved then you are considered 2 separate people and would qualify however if you have been living together for 5 years at the same address with Joint Bank A/cs etc then you will probably disqualify yourself.
Richard Taylor | Australia's leading private lender
Read the information under FAQ on the OSR.nsw.gov.au website – if you are defacto, married and one of the partners owned or has previously owned property (excluding land or commercial) then you do not qualify.
Get a separation, live apart, buy the property in his name then reconcile a few months later. In the meantime, you go overseas for a long earned holiday (long service).
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