Joint Purchase (WA) with intent to subdivide: titling, stamp duty

Looking to purchase a block with a family friend with the intent to subdivide the block to build PPORs. I am a first home owner while they are not. We will split the block in a battle axe style (approx. 44/55 split) and retain the home in the front (this will be the block I take). Looking for advice on the following:
> very silly question, but I assume we make a joint offer even though we will finance our portions separately?
> is there any way to minimise my portion of the stamp duty since I am a first home owner
> what is the best way to split and title the blocks (I read somewhere about deed of partition, but people have mentioned that there is GST costs involved?)
>when seeking finance, any special requirements I need to consider? Also, I assume I only need deposit equiv to 20 percent of the value of my portion of the property?

Apologies for some basic silly questions and thanks in advance!

 

I see sooo many potential issues with this plan! To the point that unless you get extensive legal and tax advice on it, I wouldn't be touching it with a ten foot pole.

 

how will you get separate finance?

 

Hi thatbum, are you able to provide a bit more detail about some/main concerns?

 

Hi Terry, I only assumed it was an option/possible, but by your question I'm guessing now it is not really possible?

 

complex stamp duty law as well as the tax act, gst act, family law, mortgage and real property law, serviceabiliy, ability to borrow etc etc

 

You both own one asset therefore you will need to both mortgage it. You can have separate loans, but both must guarantee each other's loans and will be each liable for the whole debt

 

Is this still required once we subdivide, which we intend to do as soon as possible?

 

So if I forgo trying reduce the stamp duty, is it just the two loans guaranteeing each other on one asset that remains the issue?

 

Not sure what you mean?

 

If you have separate titles you can give separate mortgages to the lenders. You can go your own ways, different banks even

 

Late to the party but I think your understanding is very flawed and so your decision to do this is probably based on those misunderstandings

I will try and explain my thoughts.

1. You are purchasing one place with one title. Therefore you can both purchase it as Joint Tenants or Tenants in Common. You will each be the owners so you are making one offer

2. You will fail the test to do this as FHOG because the other owner of the property presumably owns something already.

3. When you purchase you each own the block, when you subdivide you then own each of the blocks at the same ownership percentages, I’ve 45:55 of each. The deed of partition may help to give each othe the remaining part of the block but the values are probably not equal and one is vacant land so a complex matter which requires a lot of advice before you even think about agreeing to this.


4. You might be able to get separate loans but you will each be liable for the whole site until new titles are issues and security amended. Until then if your family friend defaults on the mortgage, dies, divorces etc you can be up ship creek.