All Topics / The Treasure Chest / All in the family

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  • Profile photo of harryt.harryt.
    Member
    @harryt.
    Join Date: 2003
    Post Count: 1
    February 20, 2003 - 1:35 pm

    i am new to ip having not yet taken the plung. but i wish investigate the concept of partnering a purchase of a home with my son. he will live in the dweling while we both reap the equity increase. can we split the loan, him using the fhbg and i an investment loan. is this feasible and/or a good idea? thanks harry

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225
    February 20, 2003 - 11:08 pm

    Hi Harry,

    Welcome to the forum.

    Have a look at this link relating to the FHOG in SA which should answer your questions.

    http://www.revenuesa.sa.gov.au/fhog/faqoverview.html

    Cheers,

    Matt. [:)]

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763
    February 21, 2003 - 12:58 am

    Hi,

    Thanks for your post and welcome to the forum.

    I’m not sure about the specifics of the FHOG in this area.

    Only you can say whether it is a good idea or not, but be careful about mixing family and investing together.

    You are making an investing decision and your son is making an lifestyle decision. I would hate some unforseen circumstance to cause a rift to occur.

    Not knowing your relationship, I’d say there is more that could go wrong than right.

    However, if you want to give your son a ‘leg up’ in life and this is your vehicle to do so… great! But that would be a lifestyle choice, not an investing decision.

    Get all parties to sit down with an accountant or solicitor and work through contingencies and have a written memo of understanding if you want to proceed.

    Eg. document:

    1. What happens if you need the money but your son cannot refinance

    2. How long does this arrangement last?

    3. What if your son stops paying, who owns the house?

    etc.

    Agreements are for times when things go wrong, not for good times when everthing is fine.

    **********
    Remember that success comes from doing things differently.
    **********

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of annaw2annaw2
    Participant
    @annaw2
    Join Date: 2003
    Post Count: 178
    February 24, 2003 - 12:02 am

    Harry, why not purchase a positive cash flow property between you if you want to help out? Find something in a less expensive price range for a start. Our daughter has an IP in Sydney and her own unit, and we recently purchased a 10% return property in her name and ours. Do a bit of research and see what you can find. Our sons both have bought their own homes in the last 15 months and will be purchasing the same cash flow return IPs soon. It will help pay the mortgage. Just a thought.

    Thanks for all the great information on the forum

    anna

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