I would to get into property investment but have a problem with the startup capital.
My situation is that i bought a property with my brother, which has doubled in value over 6 years in Randwick NSW. I have since got married and have 3 children. The house became too small. So we decided to knock my parents house down and build a 2 storey house which i would have ownership when the parents were deceased. Although i am paying for the loan, the house is still in my parents name.
What is the best and cheapest way to change the ownership to my name. Can my parents sell the house to me for $1, and i only pay Stamp Duty on the $1, or would gov agency consider this unreal, and use a valuation.the house is worth about $630,000, so i estimate Stamp Duty is $24,000 or so, which i don't have.
Suggestions greatly appreciated.
The consideration of sale at $1.00 is not in line with its true value. They could gift it to you (although seek any Centrelink implications for five year gifting rule if this is relevant to them), however you would either need a valuation done by a valuer or at the very least use the council figure for capital improved value.
I suggest you ask a Sydney based solicitor.
Stamp duty needs to be paid at market value – the actual transfer price can be whatever you like.
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
Gifting/asset disposal may have an impact on your parent's pension or benefits if applicable.
Thanks for all your responses
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