All Topics / General Property / Adding Partners Name

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  • Profile photo of rc388rc388
    Member
    @rc388
    Join Date: 2011
    Post Count: 8
    March 25, 2011 - 8:22 am

    Hi

    I am looking to sell 50% of my IP (my name only) to my wife – the issue is that my PPOR is already under Joint names and the current loan structure of the IP is not cross collaterised (original remaining loan + line of credit). If my wife takes out a loan to borrow the 50% are there any issues (other than stamp duty) because the line of credit was used to put in a deposit for the PPOR?
    Thanks

    Profile photo of angelinsydneyangelinsydney
    Participant
    @angelinsydney
    Join Date: 2011
    Post Count: 270
    April 2, 2011 - 9:29 pm

    Hi rc388,

    You are correct: The bank calculates what she can borrow by taking into account all loans taken singularly and jointly. Your situation is a non-issue provided if wife’s income and the rental income combined can service the debt levels for both PPoR and IP. But if it’s not…..

    Is there a strategy in play here? Why the need to transfer half of the IP to Mrs?

    Before you do anything, speak to your banker, who hopefully knows you best and your circumstances.

    Take care,

    Angelina

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    April 3, 2011 - 6:05 am

    Only other issue of course is CGT?

    Course will assume there is a valid reason for doing so.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

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