Hi all
This is the situation…my parents own over 200 acres of land on two titles – the house block (sheds, bore etc) about 7 acres in mum and dad’s name, the rest (cattle grazing, bore) is in dad’s name. no issue with the split, just it being two titles may make a difference when I ask the next question.
My brother wishes to purchase it. It is not a direct inheritance as there are two other kids – my sister and I – and we are fine with him purchasing it so the money goes to mum and dad. My parents are on a part pension and receive the benefits of what a pension can give – cheaper medicine etc and don’t want to lose this.
They also don’t want to have to re-invest the money quickly as they are not sure what they want to do with it. My brother is very happy for them to live there forever or until they want to do something else. He just wants to buy it as soon as possible so he can claim things on his tax as he is starting to do things up – build sheds, extend power lines etc
My mum (of course) is starting to stress about everything and we want to make this as simple and cost effective for everyone involved.
My question is, is there a way to do this – my sister and I are also willing to get involved ie distribute the money through us to help mum and dad situation – with everyone coming out ok finance and tax wise? I know we need to see accountants and lawyers but just putting it out here first
Any help would be appreciated. Thanks in advance….
Is this property considered to be a business property? Seek financial advice as it may be considered a business asset (or whatever) and part of your dad's super, if he is of retirement age, the sale income may be concessionally taxed (as super) not capital gains.
thanks and good point. I know they have given up the primary producer title but not sure when and if it applied to these two blocks (we had a large cattle property separate from this and sold it about 20yrs ago). I will look into it for sure….thanks again
just had another look on the site and came across a post regarding 'Vendor Finance' and some with 'deferred interest repayments'.
does anyone think that is an option? mum and dad don't need the money yet as it would upset their financial 'balance' and it would probably help my brother as well, just as long as it doesn't lessen his chance to claim things on tax as the 'owner'.
any thoughts welcome
I would think vendor financing would be an obvious way to go,with terms that allow your parents to keep the part pension. It may be an interest free loan with X amount paid periodically for X amount of years, or interest only loan which maybe better for tax purposes. It may be possible for your parents to pay rent to your brother and receive rent assistance from centre link. You may also want to get advice from centre link, before you see an accountant and lawyer as often they dont give the best advice.
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