Is selling ppr the right idea at seperation?

Yes, without a bit more info it's a bit hard to offer anything sorry.  They all have their good points and bad points and it's really going to come down to what you want out the other end.

Ha ha – how can you rent to yourself?

If you are separating as in a relationship breakdown then there are stamp duty exemptions so you may be able to acquire this property if full. If you sell and buy another then you would be up for stamp duty again. Factor this in.

Best option would be getting a valuation done. That way you should get a proper market value, and if you do rent it out you have proof for CGT purposes if it comes time to sell later down the track.

Have a solicitor do the paperwork for buying out his half to avoid any issues and then take out a loan in your name only, preferably IO as you may rent it out.

A decent broker can help you out on the above, including the valuation.

Cheers

Tom

Dear Tigermiger, 

I have a friend who has gone through the same process. 

How to approach. 

• Get an independent valuer. 
• Goto comm bank and ask for Valuation and they have a free valuation for their customers who are looking to purchase a new property. 
• Get appraisal letters from real estate. Tell them you are look for selling house for market price. and they have to give you a fair valuation. 
• Buy a price guide from Home price guide. This will give you exact picture of what price the properties are sold in you area and street. This is the same price guide used by agents. 

Now you can approach you partner and tell him or her, you are willing to sell this to him or you would like to buy it. You will need to spend atleast $500.00 to make sure you are buying at a right price and the other half is receiving the fair share. You will have explain him. or email him the pros and cons. 

Advantages 

• Get at the same market price 
• No real estate commission. (now you can share the commission) this is more attractive scenario. 
• No stamp duty while getting it transferred on your name.
• No time spent in looking for buying a new house. 

Once you have agreed on price and who is buying it. Please approach your bank and they will transfer it on your name and he will have nothing to do with the house. 

Please do post again if you have any more questions. 

Hari Yellina is keen property Investor and researcher.  

IO loan would be best as it allows you to maintain a high loan balance and with the offset you can still achieve interest savings.

There are many issues with the mum’s money. She should seek legal advice. At the very least you need a written loan agreement and consider what would happen to her money if you:
died
became insane/into a coma
separated
went bankrupt – she would be an unsecured creditor.

Also having a will won’t help her as it is her money. You can’t leave her her own money – she would be entitled to the money back anyway. However it is still a very good idea to have the will and there may be a few strategies which could be employed

Hari, if it is mum’s money it won’t fall into Tiger’s estate.

Hi Miger,

  I totally agree with Mark :-

  With an IP in an area where it "works best" (i.e. +ve geared) and the income from it decreasing your rental cost (plus throw in Depreciation, etc to get Tax benefits) and you renting "where it suits you to live", indeed is a great way to go.   Someone once said "You pay a huge premium to want to live in your own home" – not sure just who it was, but it makes sense to me.   If I had my time over, I'd certainly head in THAT direction (buy an IP first, and rent for myself).

  Of course, in YOUR situation, there can be extra benefits to perhaps holding on to what you are looking to purchase –

 Perhaps one more?

4) Should I be buying this place as an IP and rent a place for myself instead

e.g. what if you bought it (already nominated as your PPOR, then rented it out – the PPOR rules say you can rent it out for up to 6 years without losing your CGT exemption!!).   Anyway, this path would depend on a number of answers to questions (will it rent well?  Will it be cashflow +ve?  Can I afford to hold it AND rent elsewhere?  Do I WANT to stay here and keep it as my own home? Can I move back into it near 6 years to "restart the clock" re being my PPOR, etc.)

  Whatever you choose, do seek out the right information re "the rules" prior to making your decision.  

Benny

Hi TM,

  I love what Offset/IO loans can do for us.  As such, it sounds ideal to me – but, I am not a mortgage broker, nor any other qualified adviser – so do be guided by what others on here with the right credentials might suggest.  

As some have already mentioned, it might not be quite "cut and dried", so do seek advice re setting it up. 

As you say, this will buy you time to think and plan for your next move.  Good luck with it,

Benny