I want to take advantage of the FHOG and then after fulfilling the residence requirement turn the property into a rental.Myself and my partner are eligible for the FHOG but I was talking to a friend of mine who has said they are interested in doing a joint venture. They have already claimed the FHOG on their PPOR so having them on the loan from the outset would render us ineligible.I was thinking that myself and my partner could buy the property (obviously they would have a say in what, where etc) and then after we have lived in and held for the required time we could transfer a 50% share into their name (title and loan). We would then get it up and running as a rental.What implications would this have? Would they have to pay stamp duty on their half of the loan when we transfer the title? This is in NSW if that makes any difference. Cheers,Emma
emmajane06
Yes.
Your friend would be up for solicitors fees, stamp duty, probably loan costs etc. It doesn't sound like a very efficient way to do it.Maybe you should all go straight into it as 1/3 equal shares and not worry about FHOG at the moment and rent it out. You can still get the FHOG later as the place was used as a rental. However, I am not sure about the stamp duty levi exemption, maybe someone has already chased this one up ??? anyone .
or maybe you could have an agreement in place and leave them off the title and loan.
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
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