Best way to structure this purchase

Hi all,
Not sure in the right sub topic, feel free to move it.

My work subsides my rent as I accepted a position in a remote region (FNQ). Basic rules are that if I own a property in my name in that area, I am not entitled to this allowance. The amount is enough for me to pursue a more complicated strategy rather than straight buying a place and forgoing.

My idea was that my 20% deposit is transfered as a gift to my parents, they then purchase the place I would like to purchase then lease off them. My parents could claim the tax benefits as it would be negatively geared but I pay all cash required to service mortgage. They would on paper own it as in an investment that I would then lease.

Intention is that I rent until this current situation changes and then I would then purchase off them. I do not see much capital growth in this area but its cheaper to own than rent... And I want to live here long term as my PPOR. I own no other property have sold in Vic.

Is there any holes in this plan, is there a better structure such as trusts etc? Has anyone pursued this and have real life experience?

Thanks.

 

Stamp duty and cgt for the parents, potential pension impact?

 

I don't see much capital gain, if there is I would pay CGT. Amount of allowance would far outweigh.

I would be purchasing this back off them before pension and retirement is realised.

 

It can still effect their pension.

 

If there is no cap gain, would you do better putting the deposit elsewhere even with the rent difference?

 

Seems like a scenario where rent-vesting would make a lot more sense.