The situation:
Parents bought house for us as we couldn’t get the loan at that time. We have been paying mortgage and bank says there shouldn’t be a problem for us to get the loan now and alleviate parents of the debt + house will be in our name ect. We are getting a cash injection of 50k less tax, then early next financial year another 50k less tax. House price $500k
The problem:
We want to know if there is anyway to avoid stamp duty & mortgage insurance. Since we already paid for this on the initial loan (they bought it for $450 but we pay that + all expenses to date).
We are in QLD.
Cheers
AmandaHi Amanda
Hate to say wont be anything to do with an Accountant.
Issues are not only the Stamp Duty which maybe payable (However you maybe entitled to the concession if the value is less than $500K and it is a first purchase) but also the potential CGT you parents will incur on the sale.
This will be based on market value not Transfer value.
Also if it is not transferred by June 30 your parents could incur Land Tax.
Mortgage Insurance will be payable if the lvr is > 80%.
Why dont you look to be sensible on the loan structure and partly repay the debt.
Get your parents to carry 20% of the purchase (assuming they have equity in another property) price and you pay them.You may also be entitled for the FHOG but might have to explain away the relates parties issue.
Your mortgage broker should be able to help you.
Richard Taylor | Australia's leading private lender
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