Hi all,
***Warning long winded***
I have a decision I need to make and I was hoping this forum could point me in the right direction for further research or things to consider.
The situation: My Mum has an investment property with good tenants in it. Previous to leasing it this was her PPOR for 3 years. This property is privately leased. For work my mum has moved interstate and I handle the rental property etc. My mum has recently had a drop in work and her income is less then what it was before (long story) accordingly all cost ie rates,body corporate etc have started to concern her.
My Situation: I have been looking into the property market mainly from a investing point of view since reading One of Steve’s books.
The Question: I was wondering if anyone had experience with a tenants in common situation where I would become a part owner of my mothers investment property and any implications that occur from this?
If this path is chosen I will seek legal advice ensuring all conditions are written up and agreed to.
Other thoughts: would a situation like opening a trust be a better idea or maybe considering something else entirely?
The Goal: To pay down/off the remaining loan and use the positive cash flow to invest in another/multiple properties.
If there is something else I should consider I am happy to do more research just looking for some direction and thoughts.The Question: I was wondering if anyone had experience with a tenants in common situation where I would become a part owner of my mothers investment property and any implications that occur from this?
Lawyers deal with this sort of thing all the time.
Some of the consequences on transfer
– stamp duty for you
– CGT for her
– social security effects possibly
– new loans neededLonger term consequences
– estate planning for death and incapacity – what if you die and leave your share to someone else, what if your mum does – sort of thing
– ability to access equity
– disagreements
–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
Hi Terry,
Thank you for the feed back it is much appreciated and I was not aware that such an event would trigger stamp duty and CGT. This is something I will need to consider and factor in.
I will look into seeking legal advice as soon as possible before proceeding further.
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