Hi
I am a joint tenant in a PPOR with my parents. About 5 years ago I transferred 33.33% of the title into my name in order to build a new house. I paid the required stamp duty at the time. Since then I have married and my wife and I have 3 other investment properties. Getting finance is such a hassle because in order to borrow funds, my parents need to be joint borrowers when I wish to draw equity out of our house (we all live in the house together BTW).
I now want to transfer the remaining 66.66% into my name but obviously the property’s value has almost doubled since rebuilding from the previous old home but is there a way I can reduce or eliminate the stamp duty?
There is a small amount of equity used but does it make a difference to the situation if there is a mortgage over the property or if it is owned 100% outright which I hope to be holding the title certificate in my hand early next year?
Thanks
Breaking News! NSW Government will temporarily remove stamp duty on new homes under $800,000 for first home buyers from August 1st, 2020. The change to the thresholds will only apply to newly-built homes and vacant land, not to existing homes, and will last for 12-months. Our NSW stamp duty calculator will be updated to reflect this change when it gets approved in NSW Parliament. Meantime, see if you are eligible.
UPDATE: COVID-19 Housing Response Bill 2020 has been assented on 11 Aug 2020 by the NSW Parliament and our calculator is updated with all the changes now. Please report any discrepancies.
https://stampduty.calculatorsaustralia.com.au/stamp-duty-nsw
good luck hope so this news will excite you
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This reply was modified 4 years, 2 months ago by
Philip-Green. Reason: spell mistake
Hi I am a joint tenant in a PPOR with my parents. About 5 years ago I transferred 33.33% of the title into my name in order to build a new house. I paid the required stamp duty at the time. Since then I have married and my wife and I have 3 other investment properties. Getting finance is such a hassle because in order to borrow funds, my parents need to be joint borrowers when I wish to draw equity out of our house (we all live in the house together BTW). I now want to transfer the remaining 66.66% into my name but obviously the property’s value has almost doubled since rebuilding from the previous old home but is there a way I can reduce or eliminate the stamp duty? There is a small amount of equity used but does it make a difference to the situation if there is a mortgage over the property or if it is owned 100% outright which I hope to be holding the title certificate in my hand early next year? Thanks
The only way to avoid duty is to argue that the parents hold their share of the property on trust for you. It would be a resulting trust that arises because of the circumstances. We have helped a couple of people transfer title without duty – or nominal duty in situations like this in NSW.
If having the property mortgaged won’t necessarily affect the duty aspects, but practically the mortgage will need to be discharged when title changes hands – which would mean a new loan application if it won’t be paid out.
Best to seek legal advice.
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 Terry, thanks for replying…..I would like to learn more about this idea you mentioned regarding holding the property in trust. Would you be able to elaborate more what this involves and if it is a surety that duty can be avoided plus any pros and cons of the situation?
Happy to make contact with you personally if need be.
Thanks
Hi VFA1
I am not taking on new law clients atm as getting too many.
You can read the legislation at s 55 of the Duties Act NSW and surrounding sections:
http://classic.austlii.edu.au/au/legis/nsw/consol_act/da199793/s55.html
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
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This reply was modified 4 years, 2 months ago by
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