Hi all,
With out going into too much detail as to the pro's and cons, is it possible (for family reasons) to buy a property in someone else's name.
ie. A parent applies and qualifies for the loan in their son's name, with the son owning the property outright? (nothing to do with FHOG etc)Regards,
RustyYes.
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
Thanks Terry,
I did say without going into too much detail!
Is this a straight forward process?How can they apply for the loan in the son's name? Unless they are also on the loan? If the son is on the loan he is liable (not the parents).
Depending on what you want to do and why you could do it 2 ways. One is as a bare trustee. Other is just gift the money to them and have them by it themselves.
There are heaps of issues involved such as tax, stamp duty, loans etc
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
Catalyst wrote:How can they apply for the loan in the son's name? Unless they are also on the loan? If the son is on the loan he is liable (not the parents).Possibly both would have to be on the loan. legal owner would def.
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
Okay thanks,
Now that I know it's do-able I can investigate further to see whether it's an option or not. Maybe gifting might be the go.Many thanks
Rusty.what are you trying to achieve?
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
Terry,
We're purchasing my mother's property as part of my dad's estate. She'll be gifting the money I give her onto my brother (I'm effectively buying out his future inheritance.) As part of the agreement my brother will be using some of the cash to buy a house for my mother to live in.The easiest thing is for my brother to buy her a house after being gifted the money after settlement. But we're just looking at ways to line up all the settlement dates so she could move straight into the new place before we settle on hers. So if mum could use some of her funds and and get a small loan to buy the house in my brother's name before we settle on her place she could then move in and we could move straight into her place. Then she could gift the remaining money to my brother.
I know it sounds complicated and we'll obviously be talking to our solicitor but I just wanted some background information.
Thanks very much,
I can't process that info atm!!
But if you or mum are wanting to buy something in your brother's name and then later change it to your mum's name it could be done with a bare trust. Stamp duty would vary from state to state but would be about $20 to change it over. No CGT issues either if done property as it would be considered your mum's house just with the brother as bare trustee.
Don't know how you would go with loans though but should be possible if explained to lender.
Make sure you get a lawyer to do it all or you will be up for stamp duty if you get it wrong.
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
lol.
I know, it's very hard to put into the written word! But thank you for your input, as always!
As you said, it sounds possible, we just don't want to get it wrong.
Enjoy your weekend.
Rusty
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