Hey, Going back to a previous post. Looking at purchasing my dads place at 50% of market value. Approximate value $800k, remaining loan $350k. I can use the equity as the deposit. What are the tax and other financial implications of this purchase? I imagine stamp duty payable on MV, CGT on the PP, can't think of what else may come up. Thanks.
heaps of other issues - asset protection, claw back provisions of bankruptcy act, conveyancing acts and succession acts, laws of equity, social security issues, family law issues, cash out restrictions on loans, serviceability, elder abuse allegations etc etc Seek legal advice. In most cases a market value transfer is a better strategy.
I am not sure about all of the facts. However you should start with a discussion among your family about what is going on. This is a large amount of money and getting everybody to agree and be on the same page is important. If everybody is on the same page you could then start a family charter outlining how everything works. I have seen a transfer like your proposing done in many ways for many reasons. However the quick transfer without a clear understanding can create a lot of problems later on.
Finance will be an issue, bank will value the property at the lesser of market or transfer You pay stamp duty on the value of the property, not on what you pay Will it have implications on your father's pension (ie disposal of assets)? @Ross Forrester & @Terry_w raise some good points will it be a ppor or IP?
Gifting for Centrelink will have impacts. Exploring the granny flat Centrelink concessions may be something to consider. This could allow you to own an interest and also your Dad. But it wont be an investment with deductions.
This is not the case. If it is a favourable purchase between related parties they will use value. I just did one where the consideration was nil but the loan $800k plus.
Thanks for the thoughts. It's a way for me to take on his remaining loan and 'help him out. Mind elaborating on succession act, and laws of equity please? Never heard those terms before.
Always have a lawyer involved. I'm hyper cautious about this stuff. Both my extended and partners families are in large court battles over inheritances. Fortunately my parents are PAWs, and sis and I were told at 16 that we would receive nothing, and have created wealth independantly from my parents. Just exploring options for my dad. There's a lot more to it that the above question posed.
equity is the most difficult area of law. There can be issues like fraud, undue influence, unconscionability, mistake, unjust enrichment. Succession act - claw backs on death potentially.
My sister and I are doing this right now. We have a solicitor working it out for us. Worth every penny.
