Being added to a loan (change of title) BROKERS HELP

Hi all,


Quick one :
If my mate gets a home now with 2 lots in his name at 800K and 4 months later I want to join the loan

Do I pay stamp duty on the 800,000 or my share of the loan assuming I have one lot and he has one ? Is it stamp duty on 800k or 400 k ?


This is in NSW by the way


Thanks

 

lenders will only lend to legal owners of a property - generally.

So if you want to become an owner, title will have to change and so will the loans.
If you want to become a borrower, you will generally need to be an owner.

If beneficial ownership of the property changes you will pay duty based on the value of the share of the property being transferred.
Your mate will need to consider the CGT consequences too.

 

The lot he wants to get is already subdivided in 2 lots.

when the time comes in a couple months or a year I want to go on the loan for one lot, will the bank value only one lot and I will pay a stamp duty on the value of that one lot ?


For example

land value now is 800k for 2 lots

in 1 year value of Lot A is deemed to be 405K and LOT B 405k

since I want LOT B , will I pay a stamp duty on the 405K ?

Thanks

 

The bank has nothing to do with stamp duty.
If you buy property your conveyancing solicitor will help you with that.
If the lot you are purchasing is worth $405,000 you will pay duty on that.
He will pay CGT or income tax on the sale.

If the land hasn't been purchased yet you can get advice on how to avoid stamp duty odown the track

 

GST could also apply to the sale / transfer (paid by the vendor but remitted from the sale proceeds when it settles). Vacant land is a taxable supply. Depends why its being sold etc. A solicitor / tax adviser may assist. The contract should address the GST method (which may minimise the impact) and may avoid a later higher sum.

 

There is no quick answer I'm afraid

If the lots are already subdivided then it quite probably would be simpler for him to have 2 purchases (one for each lot) and 2 loans (one for each lot). Then he could sell or transfer you the second lot and that loan simply be in your name and you pay the transfer duty.

I don't actually understand what you are trying to achieve

Is the same lot that you have another thread about that you are currently subdividing???

 

Hi mate

Thanks for that

best thing to do is for us both to wait then jump on the loan together