I haven’t done many posts as fairly new and I’am looking at buying townhouse at moment as daughter found at undermarket value in area and was going to buy but just comes up short.Which I feel for younger ones trying to buy to make a start and I don’t want to discourage her for being proactive and not paying dead rent. Well to my question as you might have gathered I’m buying with the intenion of selling to her down track say12 to 18mths time.Anybody got surgestions on best way to minumise costs eg capital gains,so she can get first home owners, stamp duty ect.I believe when i settle I can sell on to her at same price if state on paperwork an don’t have to pay capital gains is this right or something like this? Any help in anyway of giving advice would be very much apprectated. cheers
Can you help her buy it, ie is in her name from day one, she gets fhog and she simply refinances when she can and pays you back (with or without some agreed interest?)
good luck and congrats to her for getting underway[biggrin]Why not lend her a deposit – will save you a lot as compared to you buying then selling to her. More than the FHOG is worth I suspect.
If you can lend her a 20% deposit then she is almost guaranteed of getting finance as long as her CRA is OK.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi kojo425288,
You should consider the stamp duty as well. When you sell the property to her she would need to pay stamp duty again.
As Simon suggested, I think the cleaner way would be for you to give her a deposit and buy in her name to start with.cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Thanks for reply guys, did think of lending deposit but need to do some renos, bathroom,painting of unit and general tidyup.So thought 20% starts to blow out, so thought better if I buy keep control of things if know what I mean. plus when resell to her she gets fhog plus no stamp duty and I had a look at costs doing both ways, and in my caluations works out to be about same. I mainly wanted to know about what I was told about if I contracted it to her now for same price in 12mths time don’t have to pay capital gains? I’m trying to find best way around. thanks[biggrin][confused2]
Originally posted by kojo425288:Thanks for reply guys, did think of lending deposit but need to do some renos, bathroom,painting of unit and general tidyup.So thought 20% starts to blow out, so thought better if I buy keep control of things if know what I mean. plus when resell to her she gets fhog plus no stamp duty and I had a look at costs doing both ways, and in my caluations works out to be about same. I mainly wanted to know about what I was told about if I contracted it to her now for same price in 12mths time don’t have to pay capital gains? I’m trying to find best way around. thanks[biggrin][confused2]
Given that you have to pay stamp duty if you buy it then how could the costs be the same in either option?
If you lend or gift her a deposit then she gets the FHOG and the SD exemption. NO SD is paid at all.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
cheers mortgage hunter but she will be giving me back stamp duty and all other costs for renos
look into doing a family pledge on part of your equity. Look into if lenders will be ok with you gifting her part of the money and will see it as geniune savings for her home loan.
Brett Duxbury
Duckster Financial Services
Mortgage Broker
http://www.ducksterfinancial.comComments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
You will need to pay CGT at market rates for the property, not transfer amount. So if the property has gone up in value, you could be liable not matter what you transfer it at.
Transfering it at a lower value could also affect the amount of money she could borrow. Lenders want to lend on the purchase price or the value, whichever is lower.
Also consider the FHOG and stamp duty concessions may not be around in 12months time.
There is a way to transfer it without stamp duty/CGT issues, and that is to use a Bare Trust. ie you buy it as trustee for her. Later on names can be changed without stamp duty. But you may have problems getting the grant with this setup, though it may still be possible as she will be the real owner.
Terryw
Discover Home Loans
[email protected]
Send an email to get my newsletter.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
I would like to thank everybody for there input and ideas which have helped .think I have sorted havn’t got time to go into at moment but will share later. once again many thanks to all.[biggrin][grad][happy3]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
