First Home Buyer Grant / Stamp Duty Concession - For Joint Ownership Legal Question

Discussion in 'Legal Issues' started by PineappleFury, 8th May, 2021.

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  1. PineappleFury

    PineappleFury New Member

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    Melbourne
    Story:

    I currently live with my parents, my brother moved out to his new home this year. My parents house deed is under my brothers name only (as well as the mortgage), they provided him with the deposit long time ago. He has gotten married and purchased a new home with his partner. That new home is his PPOR. (He did use my parents home to help as an asset to purchase his new home)

    • Parents house purchased for 400K back then, now it is worth 700K.

    • Mortgage remaining is about 150K
    Here's the thing, my parents and brother want me to pay off the remaining amount of the mortgage and have my name on the house deed as well. Since it's better I do that than move out and waste money on rent.

    • They want to put my name on the house deed, making it a joint.

    • Would that require me to also have my name on the existing mortgage and house? Also what are the complications of doing so.

    • Our intentions are to have us co-own the property together and I help pay off the remaining amount of the mortgage. My parents house is also my PPOR.
    I would be required to pay stamp duty.

    My question is would I be eligible for stamp duty concession or first home buyer grant, for having my name on the house deed (joint-ownership of the property)?

    and what is your opinion on this arrangement, I feel there are many legal issues and capital tax gain implications once we take into consideration of the mortgage he has on the property.

    • My brother has previously used his First Home Buyers Grant on it already.

    My brother is 11 years my senior, at the time when we moved to the big city he started working and so they decided this arrangement way. (I still feel they should of also put their name on the deed with him, but they didnt).

    I was still in middle school at the time, so was a minor and weren't involved and now that I have finish college and working full-time they want me to help out.

    Since i'm still living in my parents home, I don't mind paying off the remaining mortgage since I'm also living there, but want to have my name on the deed as well to avoid any complications in the future.

    I'm still figuring out the best approach for this, any recommendation would be appreciated.
     
  2. thatbum

    thatbum Well-Known Member

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    It seems pointless and a waste of money to put your name on the title.

    What's the point exactly?
     
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  3. PineappleFury

    PineappleFury New Member

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    To have transparency on what equity I have ownership over in my parents house, as well as for future use for another property asset etc.

    My brother is paying off his new home's mortgage, while I will pay off the remaining mortgage on my parents home.

    Cause at this stage, he has complete ownership of everything and it would just be me helping him pay off the his mortgage without anything to show for it later.

    I want to know what exactly I am getting myself into and what's the best approach in your opinion on this?
     
  4. Trainee

    Trainee Well-Known Member

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    Are you saying the house you and your parents live in is solely in your brother’s name?

    what is the point of THAT? Cgt exemption is messed up, your parents waste their ppor cgt exemption and succession is a mess too. If your brother has a divorce, or dies......
     
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  5. PineappleFury

    PineappleFury New Member

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    Melbourne
    The house myself and my parents currently live in as our PPOR is solely in my brothers name. Yes.

    I'm not too informed about CGT exemption, will have to read up on it.

    All of these decisions regarding having my brother as the sole name on the property was made when I was 12 years of age and have no influence on the matter.

    Which is why, I want to make sure there is clear understanding of what needs to be done to fix this issue. Or is it best I just walk away and move out, have no involvement in this matter.
     
  6. Trainee

    Trainee Well-Known Member

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    You havent stated what all of you want out of this. Your parents have no security in retirement. Do they work or get a pension or have other assets?

    If your brother dies, divorces or goes bankrupt, all the properties are up for grabs. This is probably the biggest risk you are not aware of. Theres land tax. Or if he moves to another country the tax implications are complicated.

    you all need lawyers to explain this to you.
     
  7. PineappleFury

    PineappleFury New Member

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    Melbourne

    My parents are on pension. Don’t have other assets.

    my end goal is to have some equity / asset in my name if I’m gonna be paying off the mortgage. Ultimately using that to help purchase my first complete 100% ownership of a home one day.

    My brother does have land tax for my parents home property. They also want me to pay for that as well. Roughly $1K per year. This is where it gets tricky as land tax is tax deductible.

    I’m thinking staying out of this whole mess would be easier and moving out. I will speak with my brother and a solicitor this week regarding this.

    Any other thoughts you have?
     
  8. Trainee

    Trainee Well-Known Member

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    Are you all paying rent to your brother?

    While for you it might be cleanest to not get involved at all.....

    Your parents helped with the initial deposit for the property, but its in your brothers name. Are your parents or your brother aware what happens in a divorce or bankruptcy situation?
     
  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Get some legal advice. You can have an ownership interest in a property without being on title.
     
  10. thatbum

    thatbum Well-Known Member

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    I wouldn't touch any of that ridiculous sounding family ownership arrangement if I was you. Go do your own investing or buy your own place.
     

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