Hi guys,
Just wondering what are the available options for my parents handing over their house to me, other than me buying it off them? There is nothing owing on the house and they wish for me to have the house and take over other costs; rates etc. I have no problem with this as they are my parents and looked after me when I needed them.
As I am the only child, I am the only one listed in their will if anything happens.
What do I need to look out for if they gift me the house? And what ever option is available how does this affect my future investments?
If this does go through, will I have available equity in the region of $395k or will it be $0?
My partner and I are currently building in Canberra, so I do not qualify for FHOG
Thanks for reading and look forward to reading your responses.
Daniel
They can gift you the house with them transferring the house into your name. But this will mean stamp duty will be payable on the value of the place. This could also affect their centrelink payments such as pensions etc. If they transfer it to you then it is yours and you will have equity of the full value. You could also buy it off them for the full amount and borrow 80% to buy it.
Or you could leave it in their names and get them to leave it to you in their will. Since it was their main residence there would probably be no stamp duty payable. But this won't help you access the equity unless they get a mortgage and on-lend you the money.
Buying it for market value may be a better option as you can then gear it to 80% and then they gift you the money back later and you pay down the loan to $1 and have the rest available as redraw. If you just get it gifted it will be hard for you to get access to all the equity as these days the banks do not like approving loans for large amounts of cash.
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
How would this affect their centrelink payments exactly and how can I find out??
Have a look on the centrelink website. If someone on the pension or near pension age gifts away money they have various rules – which I haven't looked into as have had no need so far.
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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