Hi All,
Just wanted to check how will this work out. We all were living together (me, my wife, mother and dad). I had a Baby 2 months ago and my mother passed away 1 week after that. As my Dads disabled, I am currently living with my Sister and eventually plan to rent a Unit near my Sister for next 1-2 years. As this suits our family best.
Our HOME/Prime Residence is only on my Name and not trying to rip ATO off, but want to make the best decision for my family.
Can I Transfer the HOME into my DADs name, he has never had any home in Australia, is an Australian Resident?
Then we the family can rent in Blacktown near my Sister home for 1-2 years and decide from there.
My Dad as he has no source of Income, does not claim anything from Centrelink etc, becoz he came on Sponsored PR Visa.
The prop will generate about about 15 a year in rental income. he can just pay whatever Tax is required and that might probably work for us best in next 1-2 years.
Can I transfer my PRIME Residence in my Dads name and He can rent it out via agent later right???
Regards,
Manish
A few issues that needs to be addressed.
1. If you do the transfer – stamp duty is payabe ( they take it as a “sale” still …even if it’s a free transfer )
2. Do you still have a mortgage on the place? if so your dad need to take out a loan…and with no income – it won’t be easy….EVEN if his getting rent of say $400 p/w this won’t be enough for living expense + mortgageLastly Why do you want to transfer it into his name?? if it’s to show a sign of gratitude and appreciation and sign of good gesture ?
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hi Michael,
I owe about 1k on the property, which can be paid off anytime. The reason for Trasfer is, I dont know where is want to live for next 1-2 years, happy to rent closer to my Sister. If I rent it out, it will bring 300pw as income in rent, and more 40% will go to ATO.
but I will still need to fork out similar 300 per week for Renting closer to my sister…
also this way, what rent I get, we (me, my wife and my father) can rent something similar and live in it.
honestly in last 2-3 weeks I have had to make big decisions, whether to sell or rent it, or transfer in my days name
but also whether to buy something else a lot more sooner, but Im thinking avoid the buying decision for now and just rent for 1-2 years.
Thanks
I see.
Yes you get tax for the rent, that’s why it’s not alwasy a good idea to pay out a mortgage ( especially one that would become a IP) that quickly … but it’s to late now …so that aside.
As long as it’s ok for you to pay the $13-20k stamp duty then the transfer may make sense….jsut make sure it works out financial and how long you expect to get your “return” back.
It all goes down to the numbers and having ALL the information in front of you ( how much for stamp duty? how much of the transfer? how much DO you really get taxed?)
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Thanks Michael,
I was happy to Pay this one down as i had no need to move, minus two big things happening very soon to each other.
Will do the sums, but Stamp Duty in this case in NSW for a prop worth 240k – 250K is only about 8k and 1-2 for my Solicitor.
so Im looking at 10k to get in my Dads name, then let it rent out, while I am not sure where I want to live..
Thanks!
In NSW for a $240,000 property it be $6,900 for the stamp duty + ~$600 for Solicitor fee + $2,000 for another switch cost – Title transfer, GST, transfer cost, Registered valuation, title search.
You will find you will need to hire a registered and approved ( SRO) valuer to determine the market value of the property so they can work out the stamp duty and CGT ( if applicable) ; since it’s a one arm length transaction.
Good luck with it, and good work on paying down the debt to 1k….it be a great “b day”pressie for your dad
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
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