We have a PPOR in Brisbane which is under my fathers name, we would like to change it to my brothers name. My father will be getting married within the next few years and we would like to change the name for protection if the worse should happen.
Our property has a mortgage of $270k and would be worth about $370k.
What would be the best options do this?
-Does my brother finance and take a loan and buy a property?
-Would we need a deposit if buying below market value?
-Should we sell the house and look for a property to be under my brothers name.My brother is able to get finace.
What other ways would there be?
Jason
Thankfully I’m not a financial adviser, but I reckon a qualified FA might answer your varied questions like this :
1. How old is your father ??
2. What are his overall plans / intentions for the property ??
3. When was the property purchased ??
4. How old are you and your brother – any other siblings and ages thereof ??
5. Tell me about the relationship he is entering into ??
6. When you say “we” would like to change the name on the title….who exactly is we ??
7. What financial expereince do you, your father and your brother have ??…..and a whole raft of other questions and queries before they would even begin to venture a qualified opinion.
I presume your future “quasi-mum” is all fine with this behind the scenes manouvering….they have a tendency to find these types of things out….especially when they are allegedly the root cause of the “worst that could happen”.
Dazzling has proposed some good questions.
If it is an investment, you dad will probably be hit with CGT, and your brother with stamp duty (whether it is an investment or not). Can be costly to transfer. Maybe there are other options?
If you brother is buying it, then he would need a loan unless he can afford to pay cash. Whether he could qualify for a loan would depend on his circumstances.
He would not need a deposit as it is a favourable sale/purchase between family members.
Terryw
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Parramatta
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Originally posted by Dazzling:Thankfully I’m not a financial adviser, but I reckon a qualified FA might answer your varied questions like this :
1. How old is your father ??
2. What are his overall plans / intentions for the property ??
3. When was the property purchased ??
4. How old are you and your brother – any other siblings and ages thereof ??
5. Tell me about the relationship he is entering into ??
6. When you say “we” would like to change the name on the title….who exactly is we ??
7. What financial expereince do you, your father and your brother have ??…..and a whole raft of other questions and queries before they would even begin to venture a qualified opinion.
I presume your future “quasi-mum” is all fine with this behind the scenes manouvering….they have a tendency to find these types of things out….especially when they are allegedly the root cause of the “worst that could happen”.
1. Father is 45 yrs old.
2. Plans is to secure the property under brothers nameas PPOR.
3. Property was built and brought in 1990.
4. I am 24 yrs old and my brother is 20 yrs old.
5. Father had a divorce 2 years ago and want to go back to his home land to marry a wife ( Asian Country.), Its not safe to get married so soon just in case when the wife arrives to Australia the wife might leave coz its there free ticket out of a poor country. He knows this might happen ( he is blind when it comes to women) as well, my father also wants to put the property into my brothers name or mine as secruity so the new wife is not entitled to half of his assets.
6.”We”, means either me or my brother or both as PPOR.
7. all have good financials , we are not worried about getting a loan because we know we will qualify and service the loan.I was thinking I should buy the property in my name and qualify as the FHOG, and the stamp duty will cost around $2000 max.
Can we just change the title and carry on the loan in me or my brothers name?
But if I am buying a house for $270k and its worth more do i still need a deposit of 20% or 10%?
Can we just change the title and carry on the loan in me or my brothers name?
You can change the title from your Father’s name to your name this is done at settlement, however it is up to your dad what he wants to do, if he wants you to just payout his mortgage or wants you to pay him out in full….Stamp Duty is applicable on the valuation amount conducted by the Valuer General.
But if I am buying a house for $270k and its worth more do i still need a deposit of 20% or 10%.
Depends on what he wants to do. If he just wants you to payout his mortgage or if he wants you to pay him out in full (buying the house at market value)
Once your Father has disclosed what he wants to do then we can go further into the types of fees you may be up for.
Joshua McEwen
Finance Broker – WAhttp://www.prestigeloans.com.au
Brokers Lic 1297
Licensee Brett ChristieOriginally posted by Josh-Prestigeloans:Can we just change the title and carry on the loan in me or my brothers name?
You can change the title from your Father’s name to your name this is done at settlement, however it is up to your dad what he wants to do, if he wants you to just payout his mortgage or wants you to pay him out in full….Stamp Duty is applicable on the valuation amount conducted by the Valuer General.
But if I am buying a house for $270k and its worth more do i still need a deposit of 20% or 10%.
Depends on what he wants to do. If he just wants you to payout his mortgage or if he wants you to pay him out in full (buying the house at market value)
Once your Father has disclosed what he wants to do then we can go further into the types of fees you may be up for.
Joshua McEwen
Finance Broker – WAhttp://www.prestigeloans.com.au
Brokers Lic 1297
Licensee Brett ChristieHe is fine if we pay out his mortage or carry it on( in the end one of us will still owe money), We just want the title not in my fathers name, we are trying to change the title from his name to mine or my brothers, at the cheapest possbile way with out paying stamp duty etc.
If is it possible to change the title names and continue on with the loan let me know .
Transfering the Title deed from your fathers name to your name wouldnt be possible as the debt will be securied against a porperty that isnt his. Therefore, if you want to change the title you must change the finance. If your dad is happy to simply pay him out then you just simply borrow the payout amount of his current home loan. Then organise with the settlement agent to change the deeds into your name. Fees & Charges will be applicable from both parties, such as settlement agent fees, mortgage stamp duty if applicable, Lenders mortgage insurance if applicable, application fees etc.etc.
Hope this helps out a little and tell us how you go.
Joshua McEwen
Finance Broker – WAhttp://www.prestigeloans.com.au
Brokers Lic 1297
Licensee Brett ChristieOriginally posted by Josh-Prestigeloans:Transfering the Title deed from your fathers name to your name wouldnt be possible as the debt will be securied against a porperty that isnt his. Therefore, if you want to change the title you must change the finance. If your dad is happy to simply pay him out then you just simply borrow the payout amount of his current home loan. Then organise with the settlement agent to change the deeds into your name. Fees & Charges will be applicable from both parties, such as settlement agent fees, mortgage stamp duty if applicable, Lenders mortgage insurance if applicable, application fees etc.etc.
Hope this helps out a little and tell us how you go.
Joshua McEwen
Finance Broker – WAhttp://www.prestigeloans.com.au
Brokers Lic 1297
Licensee Brett ChristieThanks Joshua for your comments.
If I didnt want to pay LMI , would that mean I need a 20% of $270k = $54,000?
Or would they waive the deposit due to the property being worth $350k?
And then would me or my brother still be eligable for the FHOG?
most lenders work on a 80% Loan to Value ratio, or LVR. If the payout amount is less then 80% of the value of the property, then no LMI is applicable, however this is only applicable to Full Doc Loans.
Depends on if you want to reside in the house or not, remember that FHOG are only applicable to Owner Occupied purchases not investments & must satisfy the questions laid out in the FHOG Application. one requirement of FHOG is that you must reside in the house for a period a time, normally 6-12months. You can, after 6-12months has passed, to rent the property to someone else.
In this situation, might be a consideration to buy it as an investment so that you can still obtain the grant for your own house that you want to buy.
The decision is entirely yours. Any other problems, dont hesitate to ask.
Joshua McEwen
Finance Broker – WAhttp://www.prestigeloans.com.au
Brokers Lic 1297
Licensee Brett ChristieThanks, everything is much clearer now.
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