Hi everyone. Just wondering if you may be able to help me resolve this in my mind.
Currently I have a PPOR which is in my name. I am renting it out and when I get married in 2014 I will move into the property with my wife. It is worth $320 000 and I owe $254 000 which I am paying on Principal and Interest.
My fiance currently earns $35 000 per year and has never purchased a property given she earns very little. Could we somehow look at an arrangement where she buys an apartment in her name, with help from me over in Melbourne as we would like to live there at some point. Is there some way in which she can claim that as her PPOR briefly but rent it out?
Then we could move from my PPOR and rent it out to her PPOR and live in it?
Just trying to figure out options for us so that we can live in VIC for a year, keep my property in WA and not be financially worse off. Pretty hard to figure it out. Help would be appreciated.
Thanks
Your getting married. Even just having a fiance pretty much means your one and the same person unless you actually live apart from each other for work purposes it would be pretty difficult to do the above situation.
Plus you did just say that your fiance only earns around 35,000 a year and given that she hasnt purchased a property yet. What would you be helping her out with equity? Because you wouldnt be able to help her service the loan.
Are you trying to claim like a first home owners grant or discounted stamp duty rate ?
Couples can only claim one property between them as the main residence. THis includes defactos.
Don't forget in VIC there is stamp duty exemptions for transfers between spouses.
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
Transferring between spouses would come in handy if one Half suddenly got a pay rise whilst the other stopped working. Terry, Are there rules that say that you can only transfer ownership for estate planning reasons over the obvious tax minimisation reasons ?
wilko1 wrote:Transferring between spouses would come in handy if one Half suddenly got a pay rise whilst the other stopped working. Terry, Are there rules that say that you can only transfer ownership for estate planning reasons over the obvious tax minimisation reasons ?Hi Wilko,
The ATO has indicated in a few publications that a spouse borrowing to buy the interest of another spouse can claim the interest where the property is or will be an investment property.
But it is easy to get this wrong and not be able to claim the interest. There is a thread on another forum in which the poster was boasting how they did this – but his spouse had gifted her share of the property to him. You cannot borrow to ‘buy’ a gift and claim the interest!
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
Hi all thanks for getting back to me. Currently we do not live together and will not until we get married. I guess I was just trying to figure out if there was a way that she could get a stamp duty concession or something. But went and met a mortgage broker last night and if we were to buy an IP, irrespective of whose name it would be under, we would be sitting around 98% LVR which is just too high. Think I need to just focus on hammering debt. Currently I am renting out my PPOR until we get married next year and have savings in the offset. Once we get married I'll channel them all into the loan so I can start reducing it significantly and get that LVR down.
Thanks for your help this is a great forum.
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