Joint Ownership with one party not paying?

Discussion in 'Legal Issues' started by Marty Smith, 18th May, 2019.

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  1. Marty Smith

    Marty Smith New Member

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    Hi
    Thinking of entering a property share agreement with parents, where I will not be contributing towards the repayments as I will be living on my own. My parents are unable to get the loan otherwise. They are happy for me to have part ownership.

    Will this cause issues later on. In a tough spot as we are talking about parents retirement home.
    Thank you for your help.
     
    Marty Smith, 18th May, 2019
    #1
  2. Trainee

    Trainee Well-Known Member

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    Serviceability calcs are there for a reason. What happens if the parents cant afford the payments?
     
    Trainee, 18th May, 2019
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  3. Marty Smith

    Marty Smith New Member

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    I'm confident they can, and I can contribute if absolutely necessary.
     
    Marty Smith, 18th May, 2019
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  4. Trainee

    Trainee Well-Known Member

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    Do you have siblings? Whats in their will?

    What happens if you need further loans? If you get divorced or die?

    Just think about the scenarios.
     
    Trainee, 18th May, 2019
    #4
  5. Terry_w

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

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    There will be many issues both now and the future - not necessarily bad, possibly good. But get some legal advice as well as loan advice. e.g. social security act, family law, estate planning and tax laws to name a few.

    I just structured something similar for a client so that they could get 2.9 main residences CGT exempt between them and inherit in a very tax effective way.
     
    Terry_w, 18th May, 2019
    #5
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