My mother in law passed away recently and has left  a villa in South Hurstville to my husband and brother. It was valued 3 years ago at $440,000 when she took out a Seniors Loan against the equity. The amount currently owed on the Loan is $120,000. Both my husband and brother in law have agreed for me to find a finance company to arrange for a loan to pay back St George their $120,000. And also to establish a line of credit against the rest of the equity to enable further property investments.
The property was bought in 1989. How will capital gains tax affect my husband and his brother in this case:
1. If the property were to be sold.
2. If my husband and brother in law keep the property as tenants in common.
My understanding is that perhaps the only way my brother in law and husband could be Joint tenants would be if I were able to come on title with my husband. Is that possible?
Otherwise tenants in common would be ok. but the issue of the loan remains. Could then an agreement  be drawn up to the effect that my brother in law agrees for my husband and I take responsibility for the $120,000 loan and in return allow us to have access to the equity over the rest of the property for property development . We could then come to some agreement to pay him for his remaining 1/2 share of equity  at a later date. Also the agreement could allow for my brother in law to continue being able to live in the home.
Thanks
Peta