Best way to buy the in-laws place

My partner and I are in a position to take over the in laws place (their PPOR) and mortgage. This is their situation.

Market value: $580k
Loan: $380k

If they sold it on the market they would use the $200k to build a house on my brother in law's land.

We would like to take ownership of their place because we think it has good CG prospects. Now we just need to know how to do it in a way that:

A. Is a tax advantage for us (or at least not a disadvantage)

B. Won't affect their ability to qualify for a pension.

This is beyond my knowledge, but I'm sure that between all the minds here, we'll quickly find out whether this is a good idea or not.

 

Stamp duty is at market value, how you work the rest is up to you.

If you buy below market, you may be up for more in capital gains if you ever sell.

 

not if it is their PPOR.

Don't see it any different to you buying a property from open market. Just go the normal buy process from them

Again, its no different to them selling in an open market.

Disclaimer: Just my thoughts.

 

You cant "take over" a mortgage
Market value must be used - Any variation from that will affect Centrelink (gifting)
They lose tax exemption on the proceeds
The cash will be subject to income and asset tests and likely affect pension
You must charge them market rent if they retain tenancy. Otherwise deductions may be proportionately affected.
Rental must be on arms length terms and payments evident

 

Simply buy it at agreed value in a private transaction. Preferably at market value as there is another sibling mentioned.

However, there will be pension implications if they sell it to you below fair market value The discount will be a deprived asset, and will affect their pension for five years.

Make sure they get advice if planning to sell to you cheaply.
Marg

 

A. No
B. Depends on their situation

 

Sorry, should have mentioned that it would be an IP for us, with them renting it from us until their new build is complete, then we would rent it out through a RE. Does that change anything?

 

You should really buy it at full market value from them as there are many legal issues if you don't. Maybe a finance finance type arrangement could be considered?

 

Why be obligated to buy family-property at market value when you can bargain on a stranger's property for a better price?

 

For these reasons it may be best to avoid.

Even if purchased at market value relos may think it was below value and there was some exploitation involved.

 

Just wait until you inherit it if you can.