Buying Property from family members

Hey,

Am new here, so I will start off with a brief on what I am planning to do.

First of all, I have been reading the posts over the last couple of months and find them of great interest, and seems like alot of people here are on the ball.

OK…………….here is some background on my scenario.

My parents are retired, and are moving to a retirement village on Bribie Island.

I am interested in purchasing their property, as I can see huge potential (development potential) for their property.

The folks are hopefully getting valuations done this week, and I would be willing to buy it for the market rate. (I don't want any discounts, as my parents don't have too much to show for their 35 years each of school teaching ……) They are looking at moving in 6 months time.

(For Info) Anyway, their existing property that I am looking at buying is in Logan City, it borders a very busy road (dual lane carriageway), and has a land size of around 1800m2. The property is situated on a corner, and is in a r600 local zoning scheme. My parents built the house 42 years ago, and have lived in it all the time up until now. It is a 4 bedroom + builtin entertaining room downstairs, and is situated opposite a shopping centre.

My intentions would be to rent it out initially for a few years, get some experience and do some research in residential property investment, and then look at subdividing it to put 3 dwellings on. (whether this involves demolishing it or trying to put another couple of properties around them. As the property is centrally located on the block, I think a demolish is in order.)

Anyway, what I am needing to know, is how best to pay for the property. Are there any advantages that I can use since it is family owned. I know everyone says that tax savings should be considered a bonus to any solid investment strategy, but…………..are there any tax advantages. I would be buying it for investment purposes.

Or is there a way of just changing the title on the property and I transfer the money into their personal account.

I think I may have read something along the lines of ……………………

if you own a property for more than 25yrs, you can subdivide, but won't get done for CGT if sell one of the divided lots???

Anyway, looking forward to some responses and thoughts.

Thanks in advance,

Bundyanimal