Apologies in advance if this has been answered before. I did perform a search however some of the results only added to the confusion.
The question is in regards to our PPOR currently in both my wifes and my names. We will be looking at turning this into an IP in a years time. However I’d like to transfer the title soely into my name to take full advantage of the NG implications. It’s my understanding that:
1. As it’s our PPOR the title transfer won’t trigger a CGT event.
2. I may still me liable for stamp duty on the title transfer. I believe these spouse transfers are stamp duty exempt in Vic. However I’ve been searching through legislation.qld.gov.au and it doesn’t appear that these spouse transfers are exempt in Qld. Can someone confirm this for me?
3. Is my financier likely to object to this? My wife has no income so wasn’t contributing to our loan application as such.
4. Anything I’ve missed?
We’re not looking at selling the property, this isn’t to avoid CGT. In fact the transfer is from the no income spouse to the income earner partner. I’m just trying to plan the best I can in advance.
TIA,
Brett Ranie.Hi Brett,
We’ve done this loop twice in the past. Regardless of the cost, in the long term it has been well worth it. We did it for asset protection – winking and nodding – had nothing to do with improving the cashflow substantially…
It was in WA so cannot answer specifically for Qld.
1. OK.
2. ???
3. Probably not – but you might be up for rego fees on a new mortgage (a pittance, it’s the State Govt stamp duty on title transfer that is the bulk of the expense – the Mexicans are lucky hey !!), but over time this is well worth incurring.
4. The only thing that affects the strategy is you and your partner changing plans a couple of years down the track.Worked well for us…and of course the State Revenue office loved it…the ATO has since missed out on their little bit, but they’ll survive I’m sure.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Hi
In some states I beleive you can only get exemption from stamp duty if you are separating and have an order from the Family Law Court. I don’t know about QLD.
The lender will want to see an income to service the loan. If the wife cannot provide this, you may have to go on as a co-borrower. Most seem to allow this.
This sounds like a really good plan, and could save you some big $$$$ in future. Good luck with it.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Dazzling,
I am in a similar position to Brett, looking to transfer ownership of our PPOR to solely my name to take advantage of negative gearing benefits when we turn the propoerty into an IP.
We are not sure about the stamp duty implications. We are in W.A. Do you have an answser to Bretts 2nd question for W.A. properties.
Regards,
BillyBilly,
The info you seek about stamp duty rates for title transfer within WA is located in many places.
Your first port of call should be the State Revenue Office (they have a website, but I am not clever enough to know how to link it into here.
reiwa.com also has the rates on their website…with a calculator so you can play around with figures to your hearts content. Once again the IT gurus may be able to link it in for you…or you could actually search for it yourself.
A word of warning, don’t be clever or sneaky with the SRO trying to sell your partners portion for a discount – they are right onto that as it reduces Mr Ripper’s take – you’ll need to prove the current market value.
Take the hit on the duty payable, it’ll be well worth in the long run.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
You should also look at the option of putting the property into a trust (hybrid if you wish to negatively gear it). Also if you are an employee a simpler way is to salary sacrifice the interest payments, regardless of the joint title. Or so I’ve been told.
Think about the LONG term in your asset decisions and get advice,
I’ve been out of contact for the last week. I just wanted to thank everyone for their replys to this post. Special thanks to Dazzling and TerryW (you two must be getting sick of me thanking you!)
Regards,
BrettR.
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