All Topics / Help Needed! / Easiest way to transfer ownership of a property?
Hi all,
My mum currently owns a property which my brother is living in. She now wants to give that property to my brother and I so we can use it as an investment. What if any way is the easiest/cheapest way for her to transfer ownership of the property to us?
If it helps in anyway my brother has been paying my mum a rent of about $150pw for the past 5-6 years.
Thanks.
2 options – contract of sale (for a nominal amount), although your mum will be up for capital gains tax on the market value (if this is not her PPOR)
Gift the property to your brother & yourself – same issue.It does raise the question of whether your mother would then be seen as having disposed of assets in order to recieve a pension (so transferring at market value may become a consideration, with some of the money being gifted back).
Other issues include that if you wish to negative gear, you have no loan for the purchase so you will not have many deductible expenses, when you come to sell you may have to pay hefty capital gains tax if you have bought/recieved the property at a huge discount.
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