name on title

Discussion in 'Loans & Mortgage Brokers' started by Milkieboy, 27th Jun, 2015.

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  1. Milkieboy

    Milkieboy New Member

    Joined:
    26th Jun, 2015
    Posts:
    2
    Location:
    Adelaide
    Hi All,

    Been out of the property buying scene for awhile. Just wanted to check my memory on which name to best put the property into.

    About to purchase an IP that in about 2-4 years we will demolish and build as our PPOR, before that time we will put tenants in there. I earn about 3 times the income of my wife and the property we are about purchase will be negatively geared to around $5k-$7k per annum. I am considering putting the property in my name only as I am in the top tax bracket.

    Does the approach sound OK, any issues when we build and make it our PPOR? Or is there something else I need to consider. Capital gains I assume will only be an issue if I ever sell it.

    Thanks in advance
    Ian
     
    Milkieboy, 27th Jun, 2015
    #1
  2. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    1,658
    Location:
    Sydney
    Ian you need to engage your accountant - as making a mistake will have expensive consequences. You need to factor in:

    1. Negative gearing (which you have)
    2. Future servicing
    3. Land tax thresholds
     
    Shahin_Afarin, 27th Jun, 2015
    #2
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    3,980
    Location:
    Canberra, Brisbane and Sunshine Coast
    Hi Ian

    Agree with seeking an accountants advice.

    I'm not a bean counter - but it makes sense to me to have majority ownership in your name for the few years the property is treated as an IP.

    Cheers

    Jamie
     
    Jamie Moore, 27th Jun, 2015
    #3
  4. Milkieboy

    Milkieboy New Member

    Joined:
    26th Jun, 2015
    Posts:
    2
    Location:
    Adelaide
    Thanks for the responses so far.

    I need to put the offer in writing Monday night. Yes I should have sought financial advice earlier but we low balled them with an offer which is 37% under the median house price for the suburb and under the price they passed in at auction 3 weeks ago. Didn't actually expect they would even return the phone call. Obviously prepared for the agent to try push the price up on Monday when we meet.

    Does the written offer form the basis of the contract of sale? Therefore I only have Monday to seek financial advice or is can I sign Monday and make changes a few days later. Just concerned I wont be able to get in to see my financial advisor at such short notice.

    Sorry been a few years since I purchased property and forgotten the basics :-(

    Ian
     
    Milkieboy, 27th Jun, 2015
    #4
  5. tobe

    tobe Well-Known Member

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    18th Jun, 2015
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    Location:
    Melbourne
    Make your offer and or nominee that way you can change it later. Alternately put the offer in both names and have the percentages owned changed once you have advice.
     
    tobe, 27th Jun, 2015
    #5
  6. Terry_w

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

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    Terry_w, 27th Jun, 2015
    #6