Hi all,
Last year I purchased a property however at the time I was contracting through an ABN and hence the bank would not provide finance. One way to get around this was to do a 95/5% ownership split with someone else which I did with a family member to secure the property. This was only done for loan purposes as I still paid 100% of the purchase price, paid all outgoings 100% by myself, received 100% of the rent etc.
Now that I have a PAYG permanent job, I have put in an application with the bank to remove the other person from the title and loan so that it is 100% in my name. I was wondering how I go about removing the other person from the title once the bank agrees to the loan part? Can this be done by myself since there is no money exchanging hands, no transfer of banks etc or does this still have to be done by a conveyancer?
Also, can anyone confirm that stamp duty will only apply to 5% of the current value since I already own 95%? And is capital gains triggered since its a transfer even though I have been paying 100% of everything?
Thanks in advance.
Yes simply you will need to lodge a Transfer at the Titles office (after getting your lender to agree) to it to have the property transferred into your sole name.
Stamp Duty will only be payable on the additional shares purchased and CGT will be payable on any gain from the sale of the shares. With nil consideration other than face value of the shares purchased there would be no Capital Gains Tax.
Richard Taylor | Australia's leading private lender
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