Hi all
My wife and I along with another couple have decided to form a partnership of sorts to purchase investment properties into the future. As part of the agreement, my wife and I will be allowing the other couple to “buy into” our 2 existing investment properties here in Sydney.
We’re going through the process of having an agreement drawn up, but in terms of what would need to be done with the titles/mortgages (if anything), can anyone tell me what we’d need to do/steps we’d need to go through so that the existing properties reflect joint ownership between ourselves and the other couple going forward?
Doesn't sound too good to me. For starters, you will be up for CGT and stamp duty to put them on title.
You will also complicate things to no end. What if one of them goes bankrupt or there is a family law claim? What happens at death ( and I am not talking about rebirth or heaven – but challenges to the will, succession etc)
There is also the risk of you being liable for the full debt if they don't pay and the large decrease in loan serviceability – 1 person will be assessed on the complete debt, but only allowed 1/4 of the rent.
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
The post above seems to have covered the key points so I will approach it from another angle.. in all my years dealing in property and finance, I have never seen a partnership like this work out. In fact all I have ever seen or heard has been negative. Sorry to put a dampener on things. Like any relationship, as soon as the honeymoon wears off you will most likely need to deal with the spooks in the closet and the more people involved the noisier it gets. Good luck.
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