hey all
Im after some info on an investment house owned by my mum and I a 50/50 split half each that we have rented out in Qld
we have had the house built from new about 8years agoIn about a years time, Im thinking of moving upto and into our investment house, to do this I will buy my mums share of the house outright so I would own it 100%
when I move upto Qld from Sydney I will be paying rent to my mum until Im there long enough in a job to get a loan to re-finance the current loan I have atm
I will have at least 70% payed off the housebasically after some info on cost's associated with the now rental property and then with myself taking ownership of the house
the house would be worth roughly $300,000 now
I would hope we both could come to an agreement on the sale price to avoid the re-estate agents feesreally just want to get an idea of the costs involved in me owning the house outright, so I can work out how much I would need to borrow
cheers Richo
Hi Richo
There are 2 parts to your question:
1) Stamp Duty. This will be charged on an investment basis and will depend on the value of the transfer.
You will get a credit for the Duty already paid on your share.2) CGT. Course this is not paid by you but by your mother.
Without hard data and the date of the Transfer it is difficult to provide further information but at least this is a guide.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
thanks Richard
So what you are saying is that I would not pay any capital gains tax on the amount the house has gone up over those 8years to when i take 100% ownership? sounds great if I read it rightwould there be any charges on changing the title to just me ? or is that minor maybe a few hundred dollars?
for example say I buy the property for $310,000 and would pay $155,000 which is half stamp duty my mums half that would now become mine because I havn't payed stamp duty on that part.
would I pay the difference in price in which when we built the house to the current price now be included ontop of the say $155,000 which is half the value of the house 1 year from now estimated of courseI worked based on approx $155,000
stamp duty = approx $3,500wow alot cheaper than i thought
thanksHi Richo
Yes you are merely buying your mother's share in the property so no GCT for you until you sell the property.
With the Stamp Duty you merely pay duty on the transferred amount.
Course the loan would need to be re-written and that would involve the release and re-registration of the mortgage but all in all a fairly simple exercise. I am doing one for a fellow forum member at the moment in almost the same situation as yours.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
richos wrote:I would hope we both could come to an agreement on the sale price to avoid the re-estate agents feesHi Richo,
No need to pay REA fees.
Hire a valuer to establish fair market value (cost ~$500) and then hire a solicitor to write contract and handle sale. No real estate agent needs to be involved.
on ya Derek
by the sounds of it I would have to get the property valued anyhow as Richard was saying for CGT in the future when or if I sell it.
cheers all
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