Hi Folks,
We currently own a negatively geared property and due to some changing circumstances finding the monthly outgoings a little tough.
Rather than sell the property (and make a loss and owe the bank circa $10-$15K) we are looking into the option of co ownership with a family member.
I understand the most of the intricacies and possible pitfalls of shared costs, timeframes, goals etc.
My main concern is how does the other party "buy in" to the property? Would stamp duty be applicable?
Also of concern is that we have owned the property since 2009 and have incurred significant holding costs since then. Do we somehow incorporate these into the other parties share or do we just have to suck it up and start from now?
Thanks for any advice.
Yes, stamp duty, cgt and a new loan would be required.
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 for the info Terry!
Not really what I wanted to hear though. So effectively we need to sell half of the property to the other family member and I am assuming they would pay stamp duty etc on the cost of their share they would be purchasing?
Warning government rant coming… greedy b*&stards we already paid them stamp duty 4 years ago when we bought the place now they want more!
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