Forum Replies Created
Thanks Terry,
I will discuss with hubby and look into the other costs before working out what to do. Thanks again so much for your helpTerry, we didn't pay mortgage insurance when we financed the loans in 2006. I wonder if MI will apply. I'll check with my broker. Maybe it doesn't apply because of the equity I have in my PPOR? Which is approx 210K. Hmm, I will follow that up.
So if I have understood correctly, you are thinking we will have to pay 7k stamp duty to change it to tenants in common and may be up for mortgage insurance. Based on the 7k value only, I'm thinking it's worth our while making the change once I stop being an income earner? Do you agree?
And YES, anyone wanting to buy into properties should get some great advice before making the step. As first time investors, we made the biggest mistake EVER by asking our then regular accountant for advise on how we should set it up. He was a great business accountant for our standard work tax returns but really didn't have experience in property investing and we didn't know any better. We assumed all accountants were skilled in all aspects.
Duckster,
Yes that is another thing I found out the hard way, I owed the Government money for excess family tax benefits claimed because I had no idea they took into account investment losses! I've since arranged to have $0 paid to me in family benefits so it be can worked out at tax time. I still can't get my head around that whole calculation.Hi Terry,
Thanks for your post.
We live in WA.
Does stamp duty apply if we change from Joint Tenancy to Tenants in Common do you know? The property is valued at approximately 500k and the loan amount is 456k. My broker took this into account when calculating whether Westpac would approve my husbands loan.I expect I will be a low income earner until 2013 at least. So between now and then if we keep it under our current arrangement and I keep getting approx 8k per annum back via tax as my return, I guess that means I will have lost approx 24k that my husband could have made. The investment property is an interest only loan too which we have no intention of reducing so in terms of it increasing in equity, maybe CGT won't be so high when we do eventually sell? We use our tax refund to reduce our PPOR.
Thanks Richard
Just a thought, would it cost more to change the ownership to my husbands name if I was able to go Guarantor? (like total fees with bank/settlement agents etc) as opposed to changing the ownership to Tenants in Common 99%/1%? And now I am also wondering, would tenants in common be better if we wanted to change the percentage ownership one day should either my income increase dramatically to make it advantageous to put it to 50%/50%, or if we want to reduce capital gains by say changing the ownership to 99% my share and 1/% husbands if I remain the lower income earner? If that's even legal?
Hi
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