Thanks for all the reply’s. It has really given me a great starting point and a number of different options.

The most attractive way for me to transfer the property would be to buy the property from my parents for lets say $1. From my parents side this would then be classed as a capital loss which I’m not sure if the tax office would get them into trouble for selling at such a low depreciated cost. I would then be entitled for a FHOG of $7000 at this point which could be given to my parents at the end of 6 months for no having the property rented. Fortunatley the property is just 2 streets away from where I currently board with my parents so moving in would just be an option for 6 months.

Is this a good starting plan? Is there anything I missed or am totally wrong about here.

By the way my parents wont be relying on the Australian government for 1 cent in their retirement.

Thanks Everyone.

Regards

Adam Merretz