All Topics / The Treasure Chest / Urgent need advice

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  • Profile photo of MasterRELMasterREL
    Member
    @masterrel
    Join Date: 2003
    Post Count: 52
    September 22, 2003 - 12:20 pm

    Im running out of places to turn ,and just happened to find this website so I hope someone could help.
    I’ll lay out my situation and go from there.
    My fathers company went bankrupt over a $3500 legal fee.blah blah blah and its now at about $180000 thanks to itsa fees and such.
    Whats worse is itsa managed to wheel and deal and bankrupt my mother (whos name the house is under) and they put a cavet over the house.We now need finance or they will lose the house which is worth about $500000+.
    Would it be better for me to take out the loan as my parents are bankruptees and the interest rate would be high.And is there a way for me to rent the house back to my parents and then recieve a tax deduction on interest payments and depreciation(the house was built 2 years ago).
    I will be paying out the loan as my parents are in there 60s.I dont have any equity though.
    I was also wondering would they be better off selling the $500000 and buying 2 lower price houses or even pay out 2 houses and use equity to buy a third(they dont want to be in too much debt as they dont have much in the way of income)I want them to be comfortable in there old age.
    The only other problem is if I get in any financial problems and the house is in my name.
    I need this to be tax effective as I am self employed and tax is killing me.With all the extra payments I will have to raise my income.Theres a million other questions but this is turning into a novel.
    My only advive is dont let your bankrupt as itsa will find a way to attack your pesonal finance.
    That and get a good lawyer (all ours were clueless).Hope someone can help.

    Profile photo of picja1picja1
    Member
    @picja1
    Join Date: 2003
    Post Count: 144
    September 22, 2003 - 12:31 pm

    If your parents are bankrupt, no one will lend to them for refinance to pay out any debts.
    They must be at least discharged bankrupt.

    Are they going to pay the $180000?

    You can purchase the property, even though you don’t have equity, via a gift deposit from your parents.

    For Example

    Purchase price is $500000
    Non-refundable gift from your parents $250000
    Loan amount $250000 to go your parents – costs

    If you purchased as investment property, should be no problem tax wise.

    You can call me on 1300 137 107

    [email protected]

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