Hi there my Dad from the uk is williing to give/ invest me a certain amount if money so i can upgrade to lager house….How do i draw up a document to say he owns say 10 or 20 % of the property?
cheers.
Do it by way of a registered mortgage unless you want to put him on the Title and if you do that could cause an issue if he is not a Citizen / Resident.
Richard Taylor | Australia's leading private lender
Yes, that could throw in a lot of complications. Stamp duty and CGT for him when you sell. Non resident tax rates (start at 29%) etc.
It is probably better to just borrow from your dad – but again watch out for the tax aspects of any interest he charges you.
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
Ha lol, my Dad wont charge me interest……He just wants a document i suppose stating that he has invested 10%…..?
A registered mortgage will suit his needs then.
Richard Taylor | Australia's leading private lender
Is he investing 10% or just giving you 10%?
If he is just giving you 10% and doesn't want a portion of the profits (he just wants to give it as a gift), then you can just fill out a stat dec saying that he gave you a non-refundable gift of [insert amount].
That way he has a document and there are very few legal complications when it comes to title deeds, mortgages etc.Just an idea, it may be helpful or it may not be.
Ryan McLean | On Property
http://onproperty.com.au
Email MeOk, i think all he wants a doccumnet that If down the track i split up from my wife or something that he can say he has 10% share in the house so my partner would not get 50%…..He is an old skool dad and just wants to protect his/ my side off things as he has been burnt in the past…not that i am going ti spilt up with the wife lol…..He just said if he lends/ gives me the money could i have some kind of documnet sujjesting this?
Also whats the best way for shipping money to down under, will the tax man see this money if ut goes into the bank or should he pay it straight into my home loan account?
If he wants 10% of the property, including growth etc, then he really wants ownership. He could do this in 2 ways (maybe more). 1 is to go on title as legal owner and 2 is for you to act as his trustee and own his share on behalf of himself. Both will have tax consequences and probably consequence for the loan as well. You really should see a lawyer to explain the consequences draw up an agreement. Its much more complex as he is a non resident too.
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
My friends have this same problem. The wife's parents gave them a deposit but wanted it so that if they divorced their daughter would keep all the money and the husband wouldn't get any of it. I can see where they are coming from (divorce is so ripe these days).
What they did is put a caveat on the property that they bought. Don't think they have any ownership in it though. Only problem with a caveat is that if they ever want to do anything to the house (renovations, extensions etc) they have to get the parents permission. It has it's positives and it's negatives.
This is tricky though so you should probably see a lawyer about it. But the caveat could be an option? Don't know what happens because he is a non-resident though.
Ryan McLean | On Property
http://onproperty.com.au
Email Mecheers for the info guys this really is a good web site…..Not sure what a caveat is will google it now lol…..
also any ideas on shipping money from the uk to down under?
In other posts some people have suggested OzForex for shipping money. People are saying that they have good rates and low fees. But I cant vouch for that!
Andrew
itsandrew
Go as far as you can see and you will see further.
Western Union do money transfers. Don't know about their fees
You can do straight bank transfers from different countries. You need a few bank codes and stuff but it is very do-able, there is a fee but it isn't crazy I don't think.
Ryan McLean | On Property
http://onproperty.com.au
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